Contextlogic Inc (WISH)

[TRADER99]

They put out news that there was dilution but the tap is turning off.
Source: Business Wire

?ContextLogic Inc. (d/b/a Wish or the “Company”) (NASDAQ: WISH), one of the world’s largest mobile ecommerce platforms, announced today that the company will continue its Withhold to Cover process on the settlement of restricted share units (RSUs) and option exercises. This treatment reduces the otherwise additional dilutive effect of RSU settlements and options exercises through the Company’s use of cash to cover employees withholding tax requirements. The Company made this switch in the second quarter of 2022 to stem the overall dilution otherwise caused by the previous treatment which sold a portion of shares in the open market to cover employees’ taxes.

Between December 2020, when Wish went public, and up to first quarter 2022, the company used Sell to Cover, which allowed Wish, as the employer, to sell a portion of employees’ vested RSUs into the public markets to cover the federal (and other applicable) tax liabilities of employees, and distribute the remaining vested shares to its employees. With the new process, Withhold to Cover, the estimated impact on reducing potential dilution for Fiscal Year 2022 should be approximately 25 million to 26 million shares.