Another bizarre twist today in the so-called panhandler murder that shocked the city last August.

In a surprise move at the Old City Hall courthouse, Crown prosecutor Cara Sweeny consented to release Douglas Fresh and Jeremy Woolley, two American drifters, on $500 cash bail even though their immigration status dictates that they will continue to be held in jail pending the outcome of their trial regardless.

"The Crown is satisfied that the accused men don't present a flight risk," Sweeny said in court, adding that they are likewise not a threat to commit other crimes. She acknowledged outside court that the move was largely administrative.

Later in the day, Woolley's defence lawyer, Kathryn Wells, said an immigration review hearing will be held within 48 hours. With the crown's move, Wells said there's a good chance both men will be released.

Woolley and Fresh, both 22, entered Canada illegally sometime this summer. They face aggravated assault charges in connection with the Aug. 10 stabbing death of 32-year-old Ross Hammond of St. Catharines.

Hammond and a friend were walking along Queen Street at the eastern edge of Trinity Bellwoods Park when a group of two male and two female panhandlers asked them for money. According to court testimony, Hammond directed a crude sexual insult at one of the women. A brawl ensued and Hammond was stabbed to death.

The lead police investigator on the case told CTV News today that the investigation into the role the two men played is continuing and that he is awaiting the results of forensic testing on the clothes they were wearing the night of the attack.

"The narrative we've presented is very much intact," said Det.-Sgt. Gary Giroux.

Nicole Kish, 22, the lone Canadian involved in the case, is charged with second-degree murder. In a development last week, Kish was charged in a separate incident that allegedly occurred 19 days before Hammond's murder.

Police allege that Kish attacked a 50-year-old woman who petted her dog without permission, an attack that left the victim with a collapsed lung. Kish had previously received bail on the murder charge. Her bail was continued following her arrest on this latest charge last week.

The fourth "panhandler" charged in Hammond's killing, 21-year-old Faith Watts, another drifter originally from California, pleaded guilty on Oct. 1 to assaulting a police officer and obstructing police in connection with the Hammond incident, and was sentenced to two months in jail in addition to time already served. Watts was originally charged with aggravated assault as well, but those charges were dropped.