Innovative Industrial Properties, Inc. is set to IPO on the NYSE today. This is the first publicly traded cannabis-focused REIT out there. Despite cutting the offering down in size from 8.75 million shares offered to 4 million shares offered, we expect a high level of investor interest following cannabis reform in a handful of states this election.
We believe this decrease in shares offered is due to the difficulty of efficiently deploying a $175,000,000 capital raise before expenses. As you will read, the REIT is brand new and has yet to invest in any properties.
Here's what you need to know:
According to their Form S-11 filing, "Innovative Industrial Properties, Inc. is a newly-formed, self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities."
Innovative Industrial Properties does not currently own any cannabis properties, however they "have entered into a definitive purchase agreement for the acquisition of one 127,000-square foot industrial property, or our Initial Property, located in New York for a purchase price of approximately $30 million in a sale-leaseback transaction."
Innovative Industrial Properties will be listing shares of Class A common stock on the NYSE under the ticker symbol "IIPR"
The current filing price is $20 per share, with 4 million shares offered, and an additional 600,000 shares offered for over-allotment purchase. This makes for a $92,000,000 offer before expenses of $1,550,000.
The IPO was initially supposed to be an offering of 8.75 million shares at $20, which would have raised $175 million before expenses.
The bookrunners / underwriters for the IPO are Ladenburg Thalmann, and Compass Point. These underwriters have options to purchase the additional 600,000 over-allotment shares at the IPO price minus the underwriters discount if they decide to exercise their right to purchase. This would bring the total offer after expenses to $90,450,000.
For more information on Innovative Industrial Properties, be sure to check out their profile in our growing marijuana stocks database. Also, don't forget to connect with us on social media using the links to the right of this article. Be sure to subscribe to The Daily Marijuana Observer newsletter below so you never miss a marijuana stock news update.
For more details regarding the IPO, check out the NYSE's IPO Center here. and NASDAQ's IPO coverage here. Also be sure to check out the S-11 prospectus filing via the link above.