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Roumell Asset Management Nominates Candidates for Transcept Pharmaceuticals Inc (TSPT)’s Board

Roumell Asset Management, led by Jim Roumell, disclosed, in a new filing with the Securities and Exchange Commission, a letter sent to the board of Transcept Pharmaceuticals Inc (NASDAQ:TSPT). According to the letter, the fund decided to nominate to directors to the board. The candidates, Mr. Matthew Loar and Mr. Gerald Hellerman, shall be elected at the 2014 meeting of Transcept shareholders.

James Roumell

The fund has reduced slightly its position in Transcept Pharmaceuticals Inc (NASDAQ:TSPT). According to the filing, Roumell currently doesn’t plan to acquire or sell any additional shares of the company, however, they might have to sell shares on demand from their filings. A couple of weeks ago, Roumell reported disposing around 7,200 shares, trimming the holding to some 2.26 million shares. However, the fund’s position is slightly higher from the end of September, Roumell reporting ownership of 2.25 million shares in its latest 13F.

In November, Transcept Pharmaceuticals Inc (NASDAQ:TSPT) announced that it plans to reduce its work force and restructure its board of directors. The company intends to cancel 6 employee positions which account for 43% of its workforce by the end of the year. The company posted a net loss of $4.7 million, equal to $0.25 per share in the third quarter of 2013, which represents a significant downfall from a net income of $4.9 million reported a year ago.

Earlier this year, Retrophin, expressed its intention to acquire Transcept Pharmaceuticals Inc (NASDAQ:TSPT). Roumell opposed to the proposal, stating that the $4 per share offer from Retrophin is too small and undervalues the company. In September, Retrophin asked the board of Transcept Pharmaceuticals Inc (NASDAQ:TSPT) to raise its holding in the company to 15% of the common stock. The board declined the request, stating that it could endanger the $78 million net operating loss carry forwards of the company in the frames of the tax benefit preservation plan of the company.

The stock of Transcept is down by almost 22% since the beginning of the year.

Disclosure: none

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