Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 40

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 40
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 for a party to take over our company or discourage a party from taking over our company. See “Risk Factors — The
Change of Control/Delisting conversion feature of the Series A Preferred Stock may not adequately compensate you and may make it
more difficult for a third party to take over our company or discourage a third party from taking over our company” in this prospectus
supplement.

Except as provided above in connection with a
Change of Control/Delisting, the Series A Preferred Stock is not convertible into or exchangeable for any other securities or property.

No Maturity, Sinking Fund or Mandatory Redemption

The Series A Preferred Stock has no maturity
date and we are not required to redeem the Series A Preferred Stock at any time. Accordingly, the Series A Preferred Stock will
remain outstanding indefinitely unless we decide, at our option, to exercise our redemption right or, under circumstances where the holders
of the Series A Preferred Stock have a conversion right, such holders convert the Series A Preferred Stock into our common stock.
The Series A Preferred Stock is not subject to any sinking fund.

Limited Voting Rights

Holders of shares of the Series A Preferred
Stock generally do not have any voting rights, except as set forth below.

If dividends on the Series A Preferred Stock
are in arrears for six or more quarterly periods, whether or not consecutive (which we refer to as a preferred dividend default), the
number of directors then constituting our board of directors will be increased by two and holders of shares of Series A Preferred
Stock (voting separately as a class together with the holders of the Voting Preferred Stock) will be entitled to vote for the election
of two additional directors to serve on our board of directors, which we refer to as the Preferred Directors, until all unpaid dividends
for past dividend periods that have ended shall have been declared and paid in full with respect to the Series A Preferred Stock
and the Parity Preferred Stock. The Preferred Directors will be elected by a plurality of the votes cast in the election for a one-year
term and each Preferred Director will serve until the next annual meeting of stockholders and until his successor is duly elected and
qualified or until the Preferred Director’s right to hold the office terminates, whichever occurs earlier. The election will take
place at:

| · | a special meeting called upon the written request of holders of at least 10% of the outstanding shares of Series A Preferred             
 Stock and the Voting Preferred Stock, if this request is received more than 90 days