SC Fundamental Value Fund, L.P. is unhappy with the management of Transcept Pharmaceuticals Inc (NASDAQ:TSPT). In a recent filing with the Securities and Exchange Commission, the fund has reiterated its stake in Transcept Pharmaceuticals. SC Fundamental Value Fund holds 1.2 million shares which account for 6.7% of the company’s common stock. Also mentioned in the filing is that the management of the fund has sent a letter via Email to the company’s board of directors to request a special shareholder meeting.
According to the excerpts of the Email attached to the filing, SC Fundamental Value Fund is dissatisfied with the fact that the management of Transcept Pharmaceuticals Inc (NASDAQ:TSPT) is considering distributing a share of its cash to its holders, with the rest being invested in the operations of a private company. This new direction of development contradicts the company’s previous resolution to either sell itself or initiate liquidation by the end of March 2014. The management of SC Fundamental Value Fund argues that the decision to either roll the dice one more time or be sold or liquidated should be taken by the shareholder and thus requests a special meeting for December 19th, 2013.
Transcept Pharmaceuticals Inc (NASDAQ:TSPT) engages in the development of therapeutic products used in the field of neuroscience. So far this year the stock has fallen 19.5% to a price of $3.62 per share and is trading close to the all time low of $2.52. The company has a market cap of $68.2 million and a beta of 1.59, which makes it a fairly volatile stock. Transcept Pharmaceuticals does not pay a dividend. For the third quarter of 2013, the company posted net revenues of $382,000 and a loss per share of $0.25. According to the same financial report, at the end of September 2013, the company had $79.3 million in assets and debts of approximately $3 million. Thus, net tangible assets amount to about $76 million, more than the market cap of the company.