Innovative Industrial Properties Upsizes Public Offering To $225M

Cannabis REIT Innovative Industrial Properties Inc. (NYSE: IIPR) said Tuesday it has expanded its previously announced underwritten public offering to around 2.683 million shares, at $83.85 each.

The San Diego-based company secured $225 million in funding through the offering projected to close on or about July 2.

The company said that underwriters have a 30-day option to buy up to an additional 402,504 shares of its common stock.

IIP plans to use the offering's earnings for investing in real estate assets utilized by the cannabis businesses.

The public offering comes on the heels of IIPR's acquiring Cresco Labs' 118,000 square-feet Fall River, Massachusetts-based property.

The sale price was set to $28.8 million, including the financing for extra tenant enhancements of $21 million and $7.8 million, which REIT paid for the property.

In addition, the company entered into a long-term, triple-net lease deal with Cresco's subsidiary, for the continued operation of the facility.

The company has been expanding its presence within the country through real estate acquisitions.

In April, REIT purchased 199,000 square feet of industrial space in Athol, Massachusetts, for around $26.8 million. It also increased its footprint in Florida by acquiring a 373,000 square feet Wimauma-based property form Parallel's affiliate for $43.5 million, including tenant improvements.

Separately, it inked another lease agreement with a subsidiary of Ascend Wellness Holdings LLC.

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