Cannabis REIT Innovative Industrial Properties Cuts IPO Deal Size

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The Innovative Industrial Properties IPO, originally planned at $175mm, has been reduced to $100mm, according to the 4th amendment to the S-11 registration statement. The offering, which was originally expected to be 8.75mm shares at $20, is now proposed to be 5mm shares at $20 for net proceeds of approximately $91.5mm. The deal could increase by up to 750K shares ($15mm) if the underwriters, which include Ladenburg Thalmann and Compass Point, exercise the over-allotment option, which would boost the net proceeds to $105.4mm.

Another big change is that insiders will no longer convert their Class B shares into common shares. Initially, insiders were expected to have 15% of the company with no capital contribution.  Now, the 508,065 Class B shares will be redeemed for $508 and cancelled. Executive Chairman Alan Gold is still intending to purchase 150K shares (3% of the company). With this stake as well as 27,500 shares granted to two executive officers, insiders will hold about 4% of the company.

iipr-structure-updated

 

Breaking news by Alan Brochstein, CFA

ab-byline-ncvBased in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV.

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