October 30, 2017 / 2:13 PM / a year ago

BUZZ-Pot maker Canopy's shares on a high after Constellation deal

(Adds Canopy Growth share price)

** Corona beer maker Constellation Brands takes 9.9 pct stake in Canada’s biggest cannabis producer Canopy Growth Corp

** WEED rises as much as 23 pct to 1-year high

** STZ to invest C$245 mln ($191 mln) in Ontario-based Canopy, in a first for a wine and spirits co

** STZ does not plan to sell any cannabis products in the U.S. or any other market unless legally permissible

** Canopy to mainly use proceeds for international growing, support ongoing investments

** Analysts at Eight Capital say the move validates the cannabis industry as both a threat and opportunity for larger established companies in industries including alcohol, tobacco and pharmaceuticals

** Canopy shares trading at 1.3x 30-DMA; shares of Constellation little changed, up 38.2 pct YTD; WEED gained ~40 pct on TSX this year (Reporting by Ahmed Farhatha; Editing by Sai Sachin Ravikumar)

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