Marijuana Business Magazine

as effectively as we can, but also to provide the most meaningful disclo- sures we can for our investors.” To ease concerns, focus on your ancillary business plan and how it fits within federal enforcement priorities at the time. “We believe that our business plan to operate strictly as a real estate company, focused on provid- ing real estate solutions to licensed, high-quality medical-use cannabis cultivators operating in states with well-established rules and regula- tions, was also a significant factor in our favor as we worked through the NYSE application and SEC registra- tion processes,” Smithers said. “We believe our business plan fit squarely within the federal enforce- ment priorities at the time, in addition to the protections offered by the con- gressional Rohrabacher-Farr Amend- ment and pending legislation, as well the rapidly evolving public perception of cannabis for medical-use purposes.” Prep for a Successful Road Show An IPO road show is a company’s opportunity to meet one-on-one with fund managers and other potential investors in your company. It is a way for investors to get to know the manage- ment team personally, learn more about the company and ask specific questions. Preparation is of the utmost impor- tance for these road shows, Smithers said. “You can’t underprepare,” he noted. Innovative Industrial Properties’ road show lasted 16 days, and the management team conducted more than 80 meetings with individuals representing both institutional and retail investors across the country. “Our underwriters got us in front of the right people, and our senior management also had a strong reputa- tion for running public companies and building stockholder value, so that also did open a lot of doors,” Smithers said. It’s also critical to have a substantial deal lined up before your road show to reassure potential investors. Before conducting its IPO, Innovative Indus- trial Properties signed a $30 million agreement with PharmaCann, a medi- cal marijuana company operating four dispensaries and a cultivation center in New York as well two cultivation sites and four dispensaries in Illinois. The deal involved Innovated Industrial Properties acquiring