The Canadian cannabis producer Aphria was down 7% Wednesday after the company rejected Green Growth Brands' hostile-takeover bid.
Green Growth, a US-based marijuana company, on January 23 offered to acquire all Aphria outstanding common shares through an all-stock deal. The offer would have given Aphria shareholders 1.5714 common shares of its stock for each Aphria share. Green Growth first announced its intention to make a takeover bid on December 27, 2018, valuing the marijuana producer at 2.8 billion Canadian dollars ($2.06 billion).
Aphria on Wednesday said it has rejected the bid because Green Growth's proposal undervalued the company, reflecting a 23% discount to its average share price over the same period.