Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 52

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 52
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 delivery to third-party stock lenders in order to close out the Forward Purchaser’s hedge position in respect of that particular
forward sale agreement and, if applicable, for delivery to us under a net share settlement. The purchase of shares of our common stock
in connection with the relevant Forward Purchaser or its affiliate unwinding the Forward Purchaser’s hedge positions could cause
the price of our common stock to increase over time (or prevent a decrease over time), thereby increasing the amount of cash we owe to
the relevant Forward Purchaser (or decreasing the amount of cash that the relevant Forward Purchaser owes us) upon cash settlement or
increasing the number of shares of our common stock that we are obligated to deliver to the relevant Forward Purchaser (or decreasing
the number of shares of our common stock that the relevant Forward Purchaser is obligated to deliver to us) upon net share settlement
of the particular forward sale agreement. See “Risk Factors — Risks Related to Forward Sale Agreements.”

| S-32 |

A Forward Purchaser will
have the right to accelerate the particular forward sale agreement and require us to physically settle on a date specified by the relevant
Forward Purchaser if: (i) the relevant Forward Purchaser is unable to, or would incur a materially increased cost to, establish,
maintain or unwind its hedge position with respect to the particular forward sale agreement; (ii) the relevant Forward Purchaser
determines that it is unable after using commercially reasonable efforts, to continue to borrow a number of shares of our common stock
equal to the number of shares of our common stock underlying the particular forward sale agreement or that, with respect to borrowing
such number of shares of our common stock, it would incur a cost that is greater than the stock borrow cost specified in the particular
forward sale agreement, subject to a prior notice requirement; (iii) declaring a dividend or distribution on our common stock with
a cash value in excess of a specified amount per month, or with an ex-dividend date prior to the anticipated ex-dividend date for such
cash dividend; (iv) an extraordinary event (as such term is defined in the particular forward sale agreement and which includes certain
mergers or tender offers or the delisting of our common stock) occurs or there is a public announcement of an event or transaction that,
if consummated, would constitute such an extraordinary event; or (v) certain other events of default, termination events or other
specified events occur, including, among other things,