Marijuana-focused firm gets tepid response in NYSE debut

Innovative Industrial Properties became the first marijuana-related company Thursday to trade on the New York Stock Exchange, drawing a lukewarm reception from Wall Street investors.

The cannabis-focused real estate investment trust (REIT) closed down 4.25%. Trading under the ticker symbol IIPR, it finished the day at $19.15 per share, or 85 cents below its initial offering price of $20. The company’s shares briefly touched $20.52 after the opening bell but then dropped throughout the day.

Spring 2017 MJBizConThe company, headquartered in San Diego but incorporated in Maryland, buys medical marijuana-related facilities and leases them. It had filed with the NYSE in October to seek a public listing.

Innovative Industrial Properties initially had planned to raise $175 million through its initial public offering, selling 8.75 million shares at $20 per share. But, in a possible sign the company anticipated less-than-robust demand, it reduced the amount to 5 million shares and then 4 million, according to Forbes.

On Thursday, the company announced it was offering 3.35 million shares at $20 per share. Innovative Industrial Properties had planned to float its shares last week, Forbes noted.

Daily News | Briefs | Marijuana Stocks & Public Companies

 1 Comment

  1. Brett Roper December 2, 2016

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note: Comments are moderated by our editors who do their best to approve comments ASAP. As Marijuana Business Daily is focused on business, we approve comments that are specifically relevant to industry professionals. General opinions and questions about cannabis may not be posted.