Shares of Aphria Inc. sank 6.4% in premarket trade Wednesday, after the Canada-based cannabis company rejected Green Growth Brands Inc.'s the hostile buyout bid, calling it "significantly undervalued and inadequate." Aphria said the bid offers its shareholders a substantial discount to its current and future value rather than a premium, and would effectively give Green Growth a 36% interest in Aphria in exchange for share in a company with "limited operations" or other experience in the cannabis industry. Based on the 20-day volume-weighted average price of Green Growth shares before it announced the bid on Jan. 22, the bid reflected a 23% discount to Aphria's stock price over the same period. "Regardless of their brazen attempts to suggest otherwise, GGB is asking Aphria shareholders to accept a substantial discount on their shares, as well as delisting from both the TSX and NYSE, resulting in a vast dilution of their ownership in Aphria," said Aphria Chairman Irwin Simon. Aphria said it has received a written opinion from its financial advisor, Scotiabank, that hostile bid is inadequate, from a financial point of view, to Aphria shareholders. Aphria's U.S.-listed shares have tumbled 16% over the past three months, while the ETFMG Alternative Harvest ETF has rallied 6.7% and the S&P 500 has slipped 0.6%.