The share price isn't dictated by the facilities or licences or...

The share price isn't dictated by the facilities or licences or off take agreements or revenue growth that THC has; it goes down to something much simpler and far less rational than that.

THC's share price is currently controlled by the battle between rightfully exploitative buyers and extremely weak and inexperienced holders. Unfortunately due to the nature of the stock, it has attracted A LOT of uneducated and irrational investors, and when these investors see red in their portfolio they completely lose faith in the shares they hold; regardless of the never-ending stream of positive announcements that come their way.

Buyers are well aware of this, and when the price drops half a cent, they know with certainty that irrational holders will compensate and sell for a lower price because of the perceived risk that it will go even lower if they don't and they will lose even more.

The fact is, if these inexperienced sellers weren't so insecure with their holdings, the SP would have easily ran past 50 cents today. These holders are the creators of their own demise. The appetite for this stock is evidently there and the demand for the stock could be sustained all the way past 60 cents however when a large group of holders are of the above nature, you won't see a notable rise in the share price; because why would buyers pay a higher price when they know sellers are willing to exit at these levels?

Let's be clear, THC is way undervalued. The company is in the most advanced position of any cannabis stock on the ASX, have a very competent and forward-thinking management team and are almost guaranteed a successful future in this teething industry. They are a fully functioning and thriving cannabis company that far exceed the development of companies with much larger market caps have (think Althea, Auscann, Elixinol). For a $60m valuation, you'll struggle to find any company, let alone a cannabis company on the ASX with the growth potential and physical assets that THC has.

HOWEVER inexperienced investors don't account for value or growth potential when dealing with THC. The thought process of said investor is solely focused on what the current share price is and a drop by half a cent only makes them press the panic button and sell it half a cent lower than that, hence the situation and trading pattern you see at the moment.

So, there are two situations where you'll see THC break out of its trend and have a share price reflective of it's true value and potential.

1. These irrational holders stop being so. They understand the value of the shares they hold and come to the conclusion that buyers also understand the value of the company and will happily pay a much higher price for a piece of the action. (This isn't going to happen.)

2. Intelligent investors seeking value and growth potential happily continue to buy up shares at this price point until all the irrational holders have been churned through at what point the phenomena where sellers crumble will no longer occur, and the stock will lift off.

Can we estimate when this will happen? Well there are 97 million shares out there owned by the general public. Let's be extremely pessimistic and say 30% of public holders are of this irrational nature (29m shares). Put the start date of the selldown and loss of faith when Jason Colqhuan sold his holdings (2nd May) and consider the average daily volume since (400,000) and you are looking at a very rough guess that the share price will significantly rise around 73 trading days after the 2nd May (29th August 2019).