Black Horse cuts stake in Cypress Bioscience

By Lisa Kerner

Charlotte, N.C., March 26 - Black Horse Capital LP sold 596,745 shares of Cypress Bioscience Inc. stock between Jan. 23 and March 24 priced from $6.89 to $9.22 each.

With the sale of the shares, Black Horse reduced its ownership interest in Cypress Bioscience to 4.3% from 5.5%, according to a schedule 13D filing with the Securities and Exchange Commission.

Black Horse and its affiliates beneficially own 1,528,766 shares of the San Diego-based pharmaceutical company's common stock.

A prior SEC filing reported the investor's purchase of 458,032 shares of Cypress Bioscience stock between Oct. 31 and Nov. 15 priced from $11.34 to $14.47 each.

In May 2007, Black Horse wanted Cypress to "abandon its pursuit of a potentially dilutive transaction" and instead institute a stock buyback program.

It was previously reported that Cypress was offering 4.7 million shares in a secondary offering, the proceeds of which would be used to acquire another product candidate. In a prior news release, the investor said Cypress did not need to raise further capital as its balance sheet had over $100 million of cash and no debt.

At that time, Black Horse owned 1,201,461 shares of Cypress' outstanding stock.

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