Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 74

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 74
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 to the charitable trust (or, if the event that resulted in the transfer to the charitable
trust did not involve a purchase of such shares of stock at market price, defined generally as the last reported sales price reported
on the NYSE (or other applicable exchange), the market price per share of such stock on the day of the event which resulted in the transfer
of such shares of stock to the charitable trust) and (2) the market price on the date we, or our designee, accept such offer. We
may reduce the amount payable to the charitable trust by the amount of dividends and other distributions which have been paid to the
prohibited owner and are owed by the prohibited owner to the charitable trust as described below. We may pay the amount of such reduction
to the charitable trust for the benefit of the charitable beneficiary. We have the right to accept such offer until the trustee of the
charitable trust has sold the shares held in the charitable trust as discussed below.

Upon a sale to us, the interest of the charitable
beneficiary in the shares sold terminates, and the charitable trustee must distribute the net proceeds of the sale to the prohibited
owner.

Within 20 days of receiving notice from us of
the transfer of the shares to the charitable trust, the charitable trustee will sell the shares to a person or entity designated by the
charitable trustee who could own the shares without violating the ownership limits or the other restrictions on ownership and transfer
of our stock described above. After that, the charitable trustee must distribute to the prohibited owner an amount equal to the lesser
of (1) the price paid by the prohibited owner for the shares in the transaction that resulted in the transfer to the charitable
trust (or, if the event that resulted in the transfer to the charitable trust did not involve a purchase of such shares at market price,
the market price per share of such stock on the day of the event that resulted in the transfer to the charitable trust) and (2) the
sales proceeds (net of commissions and other expenses of sale) received by the charitable trust for the shares. The charitable trustee
may reduce the amount payable to the prohibited owner by the amount of dividends and other distributions which have been paid to the
prohibited owner and are owed by the prohibited owner to the charitable trust. Any net sales proceeds in excess of the amount payable
to the prohibited owner will be immediately paid to the charitable beneficiary, together with any dividends and other distributions thereon.
In addition, if, prior to discovery