Marijuana real estate company files for $100 million raise

A San Diego-based real estate company that caters to medical cannabis cultivators has filed paperwork with the Securities and Exchange Commission disclosing plans to raise $100 million.

If successful, Innovative Industrial Properties’ raise would be one of the larger funding efforts for a U.S. cannabis business.

The company – which began listing as IIPR on the New York Stock Exchange about a year ago – said in its registration statement it may sell common stock, preferred stock, depositary shares, warrants, rights and/or units.

The real estate investment trust (REIT) also said it would use the proceeds to invest in property for cannabis cultivation, indicating the company has expansion plans.

Last week, Innovative Industrial Properties agreed to buy a 350,000-square-foot grow site in Arizona for $15 million in a sale-leaseback transaction.

The company already owns four properties, including two leased by licensed growers in New York state – PharmaCann and Vireo Health.

The company also leases property to Vireo in Minnesota as well as to Holistic MD in Maryland.

One comment on “Marijuana real estate company files for $100 million raise
  1. Lawrence Goodwin on

    Thank you, Marijuana Business Daily, for shedding financial light on a cannabis grow facility located practically in my backyard: the one in Fulton County, NY run by Vireo Health. Local media (TV stations and newspapers) seem to have forgotten about Vireo’s grow site and its overall importance in producing these magnificent plants. I read a recent article from a Pennsylvania reporter who traveled all the way to Vireo and provided more details than local reporters do. I don’t recall any local media reporting, as you do above, that a California company actually owns Vireo Health’s property. That’s the beauty of “free” markets, I guess, how cannabis businesses get started with local government support and whoever has the “Do-Re-Mi,” as Woody Guthrie once sang.

    Here’s a separate matter: It’s still early in the process, but Vireo Health and the other “legal” cannabis companies are not creating much in the way of local jobs for New Yorkers. Job creation is a huge issue upstate, especially in counties like Fulton or neighboring Montgomery and Saratoga. Part of the problem is the ridiculous obstruction of NY Gov. Andrew Cuomo and his underlings in the NY Health Department. Progress would be faster on both fronts if New York stopped imposing Cuomo’s tyranny, which bans raw flower/extract/edible/topical sales, etc. and mandates the routine seizure of urine to fill jobs at cannabis companies. If a prospective employee has fresh “cannabinoids” in her or his system, it’s none of the state’s nor the company owner’s business—not in a truly “free” market.

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