Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 9

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 9
---
investors.

<div align='center'>USE OF PROCEEDS</div>

Unless we specify otherwise
in the applicable prospectus supplement, we intend to use the net proceeds from the sale of the offered securities for general corporate
purposes, including funding our investment activity, the repayment or refinancing of outstanding indebtedness, working capital and other
general purposes. Any specific allocation of the net proceeds of an offering of securities will be determined at the time of such offering
and will be described in the applicable prospectus supplement.

We will not receive
proceeds from any sales of securities by the account of persons other than us.

<div align='center'>6

DESCRIPTION OF CAPITAL STOCK</div>

The following is a summary description of our capital stock. This description does not purport to be complete and is subject to and qualified in its entirety by reference to the Maryland General Corporation Law (the “MGCL”) and to our charter and our bylaws. For a more complete understanding of our securities, we encourage you to read carefully this entire prospectus, as well as our charter and our bylaws, which are filed as exhibits to the registration statement of which this prospectus forms a part. See “Where You Can Find Additional Information.”

General

Our charter provides
that we may issue up to 50,000,000 shares of common stock, $0.001 par value per share, and up to 50,000,000 shares of preferred stock,
$0.001 par value per share, of which 23,350,000 shares are designated as Series A Preferred Stock pursuant to articles supplementary
filed with the State of Maryland. Under Maryland law, our stockholders are not generally liable for our debts or obligations. Our charter
authorizes our board of directors to amend our charter to increase or decrease the aggregate number of shares of stock or the number
of shares of stock of any class or series that we are authorized to issue with the approval of a majority of our entire board of directors
and without stockholder approval.

As of February 20, 2025, 28,331,833 shares
of our common stock were issued and outstanding and 1,002,673 shares of our Series A Preferred Stock issued and outstanding.

Common Stock

Subject to the preferential
rights, if any, of holders of any other class or series of our stock (including our Series A Preferred Stock) and to the provisions
of our charter regarding the restrictions on ownership and transfer of our stock, holders of