#Canada #Vancouver #Wishpond #Viral Loops #Emerge Commerce

Overview of the Transaction

On February 19, 2026, Wishpond Technologies Ltd., a Vancouver-based company focused on AI-driven marketing solutions, announced it has signed an asset purchase agreement to sell its Viral Loops product to Emerge Commerce Ltd. for $2.3 million. This sale, which will see $2.1 million paid at closing and another $200,000 a year later, is a strategic move aimed at enhancing Wishpond's financial health.

Background on Viral Loops

Viral Loops is a referral marketing platform that was originally acquired by Wishpond in April 2022. The software is designed to help businesses create effective referral campaigns, leveraging the power of word-of-mouth marketing. Although it has proven to be a profitable unit within Wishpond's portfolio, the company has opted to focus on strengthening its balance sheet.

Strategic Goals of the Sale

The funds from this transaction are earmarked primarily for reducing debt under Wishpond's senior credit facility. Following the closing of this sale, the company expects to cut its existing line of credit by approximately $1.4 million, significantly lowering its debt load. According to Ali Tajskandar, the Chairman and CEO of Wishpond, this sale signifies a commitment to disciplined resource management and a focus on long-term growth. She stated, "While Viral Loops has been a profitable business unit, we believe that reducing debt will allow us to reinvest in our core AI-driven marketing platform, positioning us for sustainable growth."

Financial Impacts

Upon completion of the transaction, Wishpond is set to improve its financial flexibility, allowing for a greater focus on its existing product suite. This move comes at a time when many companies are wrestling with economic uncertainties, inflation, and increased competition in the marketing industry. By freeing up cash flow, Wishpond aims to enhance its operations and offer refined products to its clients.

Market Response and Future Outlook

The decision to offload Viral Loops does not affect Wishpond's core offerings or strategic plans. Instead, it serves as a crucial step in repositioning the company to take advantage of new opportunities in the evolving marketing landscape. As demand for AI-driven solutions continues to correlate with operational efficiency, Wishpond is well-poised to advance its capabilities and expand its client base by reinforcing its core marketing solutions.

About Wishpond Technologies Ltd.

Founded to empower businesses through AI-enabled marketing solutions, Wishpond is committed to providing an all-in-one marketing suite tailored to the needs of small and medium-sized enterprises. The company features innovative products including an AI Website Builder and SalesCloser AI, a virtual sales agent designed to maximize customer engagement. Using a Software-as-a-Service (SaaS) model, Wishpond focuses on subscription-based revenue that ensures predictability and sustainability for its growth journey. Currently listed under TSX Venture Exchange as ‘WISH’ and OTCQX as ‘WPNDF,’ the company positions itself as a leader in marketing tech driven by AI innovations.

Conclusion

The divestiture of Viral Loops marks a strategic refocus for Wishpond Technologies as it looks to streamline operations and invest in its core capabilities. As the company heads towards the closing of this transaction, stakeholders and investors alike will be keeping a close watch on its resultant effects on financial performance and market positioning. With a clear commitment to innovation and financial prudence, Wishpond appears geared for a strong future.