Shares in Victoria’s medicinal cannabis producer, Cann Group (ASX:CAN) slumped 12.5% today.
The share price closed at 14.0c on Wednesday, the lowest price since the company’s listing on the ASX, while the market cap dropped to $54.17M. The company’s debt is believed to be in excess of $60M.
Reasons for the drop are unclear with no announcements being made nor chatter in the online forums.
A total 1.019M shares traded hands in the sell-off, the largest trading day since January 19th when the company announced its CBD gel-pel capsules failed to generate significant improvements in sleep versus placebo in a phase 3 clinical trial.
Recently, a new CEO was appointed taking over from previous management who left the company in tatters. It remains to be seen whether the new director can steady the ship but based on the price action, investors seem to be unconvinced.