ContextLogic, doing business as Wish, shares spiked almost 40% after it announced an up to $50 million share repurchase program.
The move comes less than two weeks after the eCommerce platform unveiled a 1-for-30 reverse stock split to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market, news that sent its shares tumbling to about US$8 on a split-adjusted basis.
"We believe that the current macroeconomic environment and the strength of our balance sheet presents an attractive buying opportunity for our stock,” commented Wish CFO Vivian Liu on the share repurchase program.
“We believe the current market does not reflect the long-term value of our shares of common stock and we believe this share repurchase program will support our efforts to unlock the long-term value and opportunity we see ahead.”
The company, however, did not reveal the manner, timing and amount of the stock buybacks, stating that these would be decided based on “economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations.”
It said the share buyback program would be effective through December 31, 2023, and it does not oblige the company to purchase any certain number of shares.
ContextLogic shares had added 39.8% at US$10.04 shortly after the opening bell in New York on Friday.
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