Shares of Lightspeed Commerce (LSPD.TO)(LSPD) fell as much as 18 per cent on Thursday, after the company dropped plans for a potential sale and says it will remain public while introducing a $400 million share repurchase program.

The commerce software company said on Thursday it had concluded the strategic review that was initially launched last year. Media reports said at the time that the company had been working with a financial advisor to explore its options, including a potential sale.

“We received strong engagement from multiple participants over the last several months,” CEO Dax Dasilva said on a conference call with analysts on Thursday morning.

“After this review, our board of directors, a committee of independent directors and our executive management team unanimously concluded that executing on our full transformation plan as a public company offers the best path to maximize value for the company and its shareholders.”

Lightspeed's stock pared losses from earlier in the day, and closed the trading session at $18.04 per share, a decline of about 13 per cent compared to Wednesday's finish.

Lightspeed first initiated the strategic review process in response to feedback from shareholders, just as it was in the midst of what the company calls a "transformation plan." That plan includes focusing Lightspeed's efforts on retail in North America and hospitality in Europe, markets that have the company's largest and fastest-growing customer base, a majority of its sales, and are growing faster than the rest of its business. The company has already kickstarted the plan, cutting about 200 jobs as it reorganizes to focus on the two key areas of growth.

Dasilva said in an interview with Yahoo Finance Canada on Thursday that part of the goal of the strategic review was "finding the best corporate structure to enact the transformation." While the company had "extensive discussions" with several participants, who he says approved of the transformation plan, ultimately the board and management unanimously decided that continuing as a public company would be the best way to maximize value for shareholders.

"We're all very confident that that's the best option," Dasilva said.

Along with the decision to remain a public company, Lightspeed plans to buy back up to $400 million of shares. The company already had approval to repurchase $100 million worth of shares. The repurchase program is subject to market conditions.

Lightspeed, which reports its financial results in U.S. dollars, posted a loss of $26.6 million or 17 cents per share for the quarter ended Dec. 31, compared to a loss of $40.2 million, or 26 cents per share, a year earlier. Total sales in the third quarter topped $280.1 million, up from $239.7 million last year.