iPass Secures Credit Facility of Up to $20M

iPass (NASDAQ:IPAS), a leading provider of global mobile connectivity announced that it has finalized a senior secured credit facility of up to $20 million from affiliartes of funds managed by affiliates of Fortress Investment Group LLC.

iPass offers secure, always-on WiFi access on any mobile device access on any mobile device and is built on a Software-as-a-Service (SaaS) platform. The company has 64 million hotspots around the globe and is the world’s largest Wifi network.

Fortress Investment Group LLC is a leading, highly diversified global investment manager with $40 billion of assets.

As quoted in the press release:

“We’re excited to have such a highly regarded institution as Fortress as a partner,” said Gary Griffiths, iPass president and CEO.  “With our balance sheet strengthened by this financing, we can shift focus back to growing our revenue and closing the gap to profitability.  Moreover, using our patents as the security for this loan brings credibility to the prowess of the patents that provide the basis for iPass SmartConnect™ and Veri-Fi^TM product families.”

Under the agreement, $10 million is immediately available to iPass and has been drawn down.

This facility is secured by all of iPass’ assets, including its patent portfolio. B. Riley FBR, Inc. served as placement agent and financial advisor to iPass.

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