Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 35

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 35
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 has the right to acquire, whether such right is currently exercisable 
 or is exercisable only upon the occurrence of a subsequent condition); and                                                                      |

| · | following the closing of any transaction referred to in the bullet point above, neither we nor the acquiring or surviving entity has    
 a class of common securities (or ADRs representing such securities) listed on the NYSE, the NYSE American or NASDAQ or listed or quoted 
 on an exchange or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ.                                        |

Conversion Right Upon a Change of Control/Delisting

Upon the occurrence of a Change of Control/Delisting,
each holder of Series A Preferred Stock will have the right (unless, prior to the Change of Control/Delisting Conversion Date, we
have provided or provide notice of our election to redeem the Series A Preferred Stock in whole or in part, as provided under “—
Optional Redemption” or “— Special Optional Redemption”) to convert some or all of such holder’s shares
of Series A Preferred Stock (the “Change of Control/Delisting Conversion Right”), on a date specified by us that can
be no earlier than 20 days and no later than 35 days following the date of delivery of the Change of Control/Delisting Company Notice
(as defined below) (the “Change of Control/Delisting Conversion Date”), into a number of shares of our common stock per share
of Series A Preferred Stock (the “Common Stock Conversion Consideration”), which is equal to the lesser of:

| · | the quotient obtained by dividing (i) the sum of  (x) the liquidation preference amount of  $25.00 per share                                  
 of Series A Preferred Stock, plus (y) the amount of any accrued but unpaid dividends (whether or not declared) to, but not including,         
 the Change of Control/Delisting Conversion Date (unless the Change of Control/Delisting Conversion Date is after a record date for a Series A 
 Preferred Stock dividend payment and prior to the corresponding Series A Preferred Stock dividend payment date, in which case no              
 additional amount for such accrued but unpaid dividend will be included in this sum) by (ii) the Common Stock Price (as defined below);       
 and                                                                                                                                           |

| S-23 |

| · | 2.617801 (the “Share Cap”), subject to certain adjustments described below; |

subject, in each case, to provisions for the receipt of alternative
consider