August 15, 2018 / 3:20 PM / 7 months ago

BUZZ-Canopy Growth: Surges on Constellation Brands' $4 bln investment


** U.S.-listed shares of Canadian marijuana co up as much as ~34 pct at $33, while Constellation Brands’ shares fall 8.5 pct to $203

** Corona beer maker’s shares set for worst day in 5-1/2 yrs, while Canada-listed shares of Canopy up ~24 pct, set for its best day in over 20 months

** Constellation Brands to invest $4 bln more in weed producer, raising stake to 38 pct from 10 pct earlier

** “Deal opens the door to tremendous white space opportunities beyond STZ’s current U.S. limits. We wouldn’t be surprised if STZ eventually acquires all of WEED,” says Wells Fargo analyst Bonnie Herzog

** Both Canadian- and U.S.-listed shares of CGC have more than doubled since Constellation took $191 mln stake in co on Oct 30 last year

** More than 19 mln CGC shares traded, 7.1x times their 25-day moving avg, while more than 3.4 mln STZ shares change hands, nearly double their 25-day moving avg

** Other Canada-based weed producers rise partially, recouping losses made on Tuesday after Ontario delays start of weed retail sales

** Recent market debutant Tilray up ~9 pct, while Cronos up ~5 pct;

** CGC up ~30 pct YTD, CGC’S Canadian-listed shares up 33 pct YTD; STZ down ~11 pct YTD (Reporting by Soundarya J in Bengaluru)

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