Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 99

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 99
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 a Maryland corporation and an interested stockholder (defined generally as any person who beneficially
owns, directly or indirectly, 10% or more of the voting power of the corporation’s outstanding voting stock or an affiliate or
associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10%
or more of the voting power of the then outstanding voting stock of the corporation) or an affiliate of such an interested stockholder
are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. Thereafter,
any such business combination must generally be recommended by the board of directors of such corporation and approved by the affirmative
vote of at least (1) 80% of the votes entitled to be cast by holders of outstanding voting stock of the corporation and (2) two-thirds
of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with
whom (or with whose affiliate) the business combination is to be effected or held by an affiliate or associate of the interested stockholder,
unless, among other conditions, the corporation’s common stockholders receive a minimum price (as defined in the MGCL) for their
shares and the consideration is received in cash or in the same form as previously paid by the interested stockholder for its shares.
A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which the
person otherwise would have become an interested stockholder. A Maryland corporation’s board of directors may provide that its
approval is subject to compliance with any terms and conditions determined by it. These provisions of the MGCL do not apply, however,
to business combinations that are approved or exempted by a Maryland corporation’s board of directors prior to the time that the
interested stockholder becomes an interested stockholder.

Control Share Acquisitions

The MGCL provides that a holder of “control
shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to the
control shares except to the extent approved by the affirmative vote of at least two-thirds of the votes entitled to be cast on the matter,
excluding shares of stock in the corporation in respect of which any of the following persons is entitled to exercise or direct the exercise
of the voting power of such shares in the election of directors: (i) a person who makes or proposes to make a control share acquisition,