Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 53

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 53
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 any material misrepresentation made by us in connection with entering into the
particular forward sale agreement, our bankruptcy or a change in law (as such terms are defined in the particular forward sale agreement).
The relevant Forward Purchaser’s decision to exercise its right to accelerate the settlement of the particular forward sale agreement
will be made irrespective of our need for capital. In such cases, we could be required to issue and deliver shares of our common stock
under the physical settlement provisions of the particular forward sale agreement or, if we so elect and the relevant Forward Purchaser
permits our election, net share settlement provisions of the particular forward sale agreement irrespective of our capital needs which
would result in dilution to our earnings per share, return on equity and dividends per share. In addition, upon certain events of bankruptcy,
insolvency or reorganization relating to us, the particular forward sale agreement will terminate without further liability of either
party. Following any such termination, we would not issue any shares of our common stock or receive any proceeds pursuant to the particular
forward sale agreement. See “Risk Factors — Risks Related to Forward Sale Agreements.”

A Forward Purchaser (or
its affiliate) will receive the net proceeds of any sale of borrowed shares of our common stock in connection with the relevant equity
distribution agreement and any forward sale agreement. As a result, BTIG, LLC, Jefferies LLC, Piper Sandler & Co. and Roth Capital
Partners, LLC or their affiliates or any other Sales Agent or its affiliates who may enter forward sale agreements with us may receive
the net proceeds from the sale of such shares, not including commissions.

Other Relationships

Each of the Sales Agents,
each of the Forward Sellers, each of the Forward Purchasers and/or their respective affiliates have engaged in, and may in the future
engage in, investment banking and other commercial dealings in the ordinary course of business with us or our affiliates. They have received,
or may in the future receive, customary fees and commissions for these transactions.

In addition, in the ordinary
course of their business activities, the Sales Agents, the Forward Sellers, the Forward Purchasers and their respective affiliates may
make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial
instruments (including bank loans) for their own account and for the accounts of their customers. Such investments and securities activities
may involve securities and/or instruments of ours or our affiliates. The Sales Agents, the Forward Sellers, the Forward