Wishpond Announces Closing of Sale of Viral Loops for $2.3 Million
MWN-AI** Summary
Wishpond Technologies Ltd. (TSXV: WISH) has successfully concluded the sale of its Viral Loops product to Emerge Commerce Ltd. for a total of $2.3 million, as announced on March 10, 2026. The transaction, effective March 9, sees Wishpond receiving an initial payment of $2.1 million, with a remaining $200,000 due one year post-closing. Viral Loops, a referral marketing software platform, was originally acquired by Wishpond in April 2022.
The decision to sell Viral Loops is mainly driven by the company's intent to enhance its financial standing. Approximately $1.6 million from the sale proceeds will be utilized to pay down Wishpond’s senior credit facility, thereby reducing its overall debt and improving financial flexibility. Wishpond's CEO, Ali Tajskandar, commented that this sale is a pivotal move in strengthening the company's balance sheet and enabling it to focus on its core AI-driven marketing solutions.
Despite the divestiture, Wishpond does not expect any substantial impact on its existing marketing tools, emphasizing that the company will continue to concentrate on innovation and growth within its primary product suite. The decision also includes a forbearance agreement with the National Bank of Canada, which allows the company to proceed without additional pressure from its lender until the end of 2026, contingent on using a portion of the transaction proceeds to settle its credit obligations.
Wishpond provides AI-enabled marketing solutions to small and medium-sized businesses, aiming to streamline the customer acquisition process through an all-in-one marketing platform. The company is listed on the TSX Venture Exchange and focuses on building a sustainable, subscription-based revenue model.
MWN-AI** Analysis
Wishpond Technologies Ltd. (TSXV: WISH, OTCQX: WPNDF) recently announced the successful closure of its sale of Viral Loops to Emerge Commerce Ltd. for $2.3 million. This strategic divestiture not only highlights Wishpond's agility in optimizing its portfolio but also significantly strengthens its financial position.
By applying approximately $1.6 million of the sale proceeds to reduce its senior credit facility, Wishpond reduces its debt burden, thereby improving financial flexibility amidst a challenging economic landscape characterized by rising interest rates and inflationary pressures. The remainder will support working capital, indicating a prudent approach to maintaining operations and fueling growth in its core AI-driven marketing solutions.
Investors should view this transaction as a positive signal. Wishpond is repositioning itself to focus more on its primary business, which offers all-in-one AI marketing tools such as AI Website Builder and SalesCloser AI. The sale of Viral Loops, a referral marketing platform operating as a standalone entity, does not appear to compromise Wishpond's strategic direction nor its competitive edge in the fast-evolving marketing technology space.
The importance of the forbearance agreement with National Bank of Canada, which protects against immediate financial strain, further reaffirms Wishpond's commitment to addressing its liabilities effectively. This arrangement provides a warranted cushion that could support continued innovation and growth.
Given these developments, potential investors may consider this moment as an opportune entry point. The stock might experience a resurgence as the market recognizes the long-term benefits of improved debt levels and focused investment in core competencies. However, it is vital to maintain a cautious perspective, monitoring for potential market volatility as broader economic conditions evolve. Overall, Wishpond looks well-positioned for future growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
VANCOUVER, BC, March 10, 2026 /CNW/ - Wishpond Technologies Ltd. (TSXV: WISH) (OTCQX: WPNDF) (the "Company" or "Wishpond"), a provider of AI-enabled marketing-focused online business solutions, announces that it has closed its previously announced sale of its Viral Loops product and related assets ("Viral Loops") to Emerge Commerce Ltd. ("Emerge") for total cash consideration of $2,300,000 (the "Transaction") effective March 9, 2026.
Under the terms of the Transaction, Wishpond received $2,100,000 paid at closing, with the remaining $200,000 payable on the one-year anniversary of closing. Viral Loops is a referral marketing campaign software platform originally acquired by Wishpond in April 2022.
Wishpond has applied approximately $1.6 million of the proceeds toward repayment of its senior credit facility, representing a significant reduction in the Company's outstanding indebtedness and improving its financial flexibility. The remaining proceeds will support ongoing working capital requirements.
Ali Tajskandar, Chairman and CEO of Wishpond, commented:
"Closing the sale of Viral Loops represents an important step in strengthening Wishpond's balance sheet and enhancing our financial flexibility. By reducing debt and reallocating capital toward our core AI-driven marketing platform, we are positioning the Company to focus on innovation and long-term growth across our integrated product suite."
Viral Loops was operated as a standalone referral marketing platform within Wishpond's broader product ecosystem. The divestiture of the Viral Loops assets is not expected to materially impact the Company's core AI-enabled marketing and sales platform or its broader strategic initiatives.
In connection with the Transaction, Wishpond has entered into a forbearance agreement with its senior lender, National Bank of Canada, pursuant to which the lender has agreed to forbear from exercising certain rights under the Company's credit facility during the forbearance period, subject to customary conditions including the application of a portion of the proceeds from the Transaction toward repayment of the facility. The forbearance period extends to December 31, 2026, unless terminated earlier in accordance with its terms.
The Transaction is an arm's length transaction and no finder's fees were payable in connection with the Transaction.
WISHPOND TECHNOLOGIES LTD.
Ali Tajskandar
Chief Executive Officer
About Wishpond Technologies Ltd.
Wishpond is a Vancouver-based provider of AI-enabled marketing and sales solutions that help businesses grow more efficiently. The Company's vision is to create a fully autonomous AI-enabled platform that streamlines the entire customer acquisition journey, from lead generation and engagement to deal closure, enabling businesses to scale cost-effectively while driving higher conversions. Wishpond offers an all-in-one marketing suite that integrates AI-driven tools such as an AI Website Builder, AI Email Automation, and SalesCloser AI, a conversational AI-based virtual sales agent that leverages generative AI to conduct personalized sales calls and product demos, increasing efficiency, reducing costs, and enhancing customer satisfaction. With a focus on innovation, Wishpond has filed multiple patent applications in conversational AI, reinforcing its leadership in AI-enabled marketing automation. The Company serves small-to-medium-sized businesses across various industries, providing a powerful yet cost-effective alternative to fragmented marketing solutions. Wishpond employs a Software-as-a-Service (SaaS) business model, generating most of its revenue from subscription-based recurring revenue, which ensures strong revenue predictability and cash flow visibility while continuously expanding its AI capabilities. Wishpond is listed on the TSX Venture Exchange under the ticker "WISH", and on the OTCQX Best Market under the ticker "WPNDF". For further information, visit: www.wishpond.com.
Notice Regarding Forward Looking Statements
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about, among other things, the operations of the Company post-closing of the Transaction, use of proceeds from the Transaction, matters related to the forbearance agreement with National Bank of Canada, as well as the payment of the remaining consideration in respect of the Transaction by Emerge to Wishpond. Sentences and phrases containing or modified by words such as "expect", "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements have been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including, but not limited to, economic uncertainty and instability as a result of ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, wars, tariffs, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, risks associated with the failure to obtain the patents applied for and infringement by third parties of the Company's intellectual property and the additional risk factors discussed in the continuous disclosure materials of the Company which are available under the Company's profile on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Wishpond Technologies Ltd.
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FAQ**
How will the sale of Viral Loops impact the overall strategic direction of Wishpond Technologies Ltd. (WPNDF) moving forward, especially concerning its AI-driven marketing platform?
Given Wishpond Technologies' (WPNDF) use of approximately $1.6 million from the sale proceeds towards reducing its senior credit facility, what are the long-term financial implications for the company?
With the closing of the sale of Viral Loops, how does Wishpond Technologies (WPNDF) plan to manage its working capital requirements to support ongoing operations and innovation?
What risks does Wishpond Technologies (WPNDF) foresee impacting its business post-sale of Viral Loops, and how does it intend to mitigate these risks in a challenging economic environment?
**MWN-AI FAQ is based on asking OpenAI questions about Wishpond Technologies (OTC: WPNDF).
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