Cannabis REIT Innovative Industrial Properties to Sell Preferred Stock

Innovative Industrial Properties (NYSE: IIPR) has filed an S-11 preliminary prospectus to issue a Series A Cumulative Preferred Stock. The Real Estate Investment Trust (REIT), which sold shares at $20 in an IPO last November, didn’t disclose too much information. Ladenburg Thalmann will be the Book Running Manager, with National Securities Corporation serving as Co-Manager. The security is expected to be listed on the NYSE with the symbol “IIPRPrA.”

This news is positive for the company, which has seen its shares trade very close to its net asset value of approximately $17.13 per share (as of 6/30), as if it is successful in raising the capital it will be able to do so without diluting equity ownership. Alternatively, IIPR could sell shares, possibly below the book value, which would not have been favorable to existing shareholders. IIPR has deployed the majority of its capital and has implemented a dividend, but the company needs to raise capital to further develop its portfolio, which currently consists of two projects, including the PharmaCann New York asset and the Holistic Industries Maryland asset.

Breaking news by Alan Brochstein, CFA

Alan Brochstein, CFABased 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. Contact Alan: Twitter | Facebook | LinkedIn | Email


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