IPass Crashes Below $1, Abandons Plan To Sell Itself

IPass Inc. IPAS shares crashed below the $1 mark Thursday after the company said it gave up the idea selling itself and fired its chief executive.

The company, which provides access to Wi-Fi service in public places for a fee, changed hands recently at $0.896, down $0.34 cents.28.8 percent.

Last fall, shares had gained more than 50 percent after the company said it hired Blackstone Advisory Partners L.P. and Cooley LLP to help explore a possible sale.

With a market capitalization now about $77 million, the company has seen falling revenue and consistent annual losses since at least 2009.

The company on Wednesday named Gary Griffiths as chief executive officer to replace Evan L. Kaplan, who will step down March 6.

Kaplan was hired in 2008, reportedly to engineer a turnaround for iPass.

"It was too early to sell iPass at this point," Chairman John D. Beletic said in a press release Wednesday concerning Kaplan's departure and the company's decision to halt efforts to find a buyer.

Beletic cited timing of iPass' current development and shift to its open mobile platform from its legacy system.

In iPass's annual report filed last year, it warned that a trend toward free public Wi-Fi access presents a key risk to its business model.

"For example, Starbucks and certain airports in the United States have ceased charging their customers for Wi-Fi access and we have experienced reduced revenues as a result," the company said.

On Thursday, analysts at Chardan Capital reportedly downgraded iPass to Neutral, from Buy.