News: AC8 Auscann Group Says Canopy Growth Sold Its 13.2% Interest In Co, page-30

Let's look at 15c Canopy got per share in the Canopy sale. That means they think AusCann is worth about 47M in market cap. That is not much above the total cash they have. So if you add the cash and the property they bought in WA, you get the market cap. So Canopy thinks AusCann is worth nothing in terms of intellectual property, licenses, goodwill and business opportunities? They had to think AusCann would go bankrupt after burning out the cash pile.

Merchant Funds probably thinks this is a quick way to make some trading profit by getting the shares at 15c, trying to dump them on the market over a short period of time before the price drop to 15c. It's not easy to sell 42 million shares. Even at the volume of 2m per day (assuming there will be enough buyers), it will take 21 trading days to get rid of all these shares! Other funds might jump in and sell their shares too. Are we looking at the possibility of 8-12 weeks of new down trend? Surely the share price will not go down to exactly the cash position and tangible assets of the company. I cannot imagine support at 15c-17c but I could be wrong.