Hellenic Dynamics Plc (LSE:HELD) shares plummeted by 26% following the announcement of major changes in the company's strategy.
Adapting to the evolving European cannabis markets, Hellenic said it will no longer pursue the expensive process of EU Good Manufacturing Practices (EU-GMP) certification for its facilities as a number of operations of this kind now exist in its key markets.
Instead, it is focusing on supplying Good Agricultural and Collection Practice (GACP) flowers to EU-GMP-certified distributors.
CEO Davinder Rai said: "Having evaluated the rapidly changing dynamics of the European medical cannabis markets and seen the challenges and issues that have confronted other cultivators we are adapting our growth strategy to take advantage of opportunities which are emerging as a result of such changes.
"Our approach will now involve harnessing the scale, low operating cost and expertise at our growing facility to service the burgeoning demand from end-use customers in our target markets. I personally believe this strategy is the most disruptive thing to happen to the industry since its legalisation."
The move, which seems eminently sensible, appears to have set investors on edge with the stock falling 0.041p to 0.12p.