What made $WISH stock (ContextLogic) soar 45% on Monday?

ContextLogic Inc (NASDAQ: WISH) just announced a $173 agreement with a Southeast Asian company. Its shares are up 45% at writing.

Details of Wish-Qoo10 agreement

The owner of Wish eCommerce has agreed to sell “substantially all operating assets” to Qoo10 – a deal that values it at about $6.50 a share.

ContextLogic will have a debt-free balance sheet upon completion of this transaction – proceeds from which will be used to “monetise its NOLs (net operating loss)” carryforwards.

$WISH will continue to be a publicly listed company but will start trading under a new ticker some thirty days after closing the deal.

Versus its year-to-date low in mid-January, Wish stock is up more than 50% at writing.

Deal will benefit Wish users and merchants

Note that ContextLogic expects the deal it announced with Qoo10 on Monday to complete before the second half of this year. Tanzeen Syed – its chairman of the board said in a press release today:

$WISH is convinced that the transaction will benefit its users as they’ll have a greater selection of items to choose from and that too at competitive prices. Its merchants, on the other hand, will benefit from new cross border eCommerce opportunities.

Heading into today, Wall Street had a consensus “hold” rating on Wish stock.