My take on this large drop is the general market sentiment, but...

My take on this large drop is the general market sentiment, but also the original investment thesis has now changed, good and bad with the announcement of the new manufacturing arrangement.
I think some investors are selling down on the new uncertainty of the effect of potential competition.

The reality is though, that Yowie still have a very strong position.
They now have their own capsule that's easier to open (Yowie got multiple Lawyers opinions with the obvious intent to make sure the probability of any patent challenge was very low, so they have done the right thing there)
No licence fees to pay to Whetstone.
Higher manufacturing capacity. I believe the Whetsone plant was not state of the art, whereas the Madelaine plant is.
The enterprise value of Yowie is now down to about 120M AUD which includes all the recent options converting.
If this is a good quarterly, then this deserves to re rate back up.

Let's not forget the Angry Birds deal. This movie is only 4 months away and now has every reason to be very successful. Surely with a very well known brand, the good distribution including Walmart, and state of the art manufacturing through Madelaine, and reasonable cash levels sales will surprise us.