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.

The 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.

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One comment on “Marijuana-focused firm gets tepid response in NYSE debut
  1. Brett Roper on

    Only 300,000 shares day one on a 4% price drop seems anemic at best rather than ‘tepid’ … it would also appear that the management team includes no one with Cannabusiness specific RE experience which seems to be an obvious oversight? SG&A expenses will be high and the $30M investment in a NY State licensee should be interesting to watch, assuming the state adds chronic pain as well as five more competitors, only investing in medical cannabis properties only also seems a bit short sighted as well but … guess we will see.

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