(Reuters) – Canadian cannabis producer Aphria Inc said on Wednesday it had rejected U.S. cannabis retailer Green Growth Brands Inc’s hostile takeover bid, saying the offer significantly undervalued the company.

“Green Growth Brands 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” the chairman of Aphria’s independent board Irwin Simon said in a statement.

Green Growth Brands said in January that it would make a second all-stock takeover bid for Aphria Inc, valuing it at about C$2.35 billion ($1.76 billion).