Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 44

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 44
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 Preferred Stock and sufficient funds, in cash,
have been deposited in trust to effect such redemption.

In any matter in which Series A Preferred
Stock may vote (as expressly provided in the articles supplementary setting forth the terms of the Series A Preferred Stock), each
share of Series A Preferred Stock shall be entitled to one vote per $25.00 of liquidation preference. As a result, each share of
Series A Preferred Stock will be entitled to one vote.

Restrictions on Ownership and Transfer

In order for us to qualify and maintain our qualification
as a REIT under the Code, our shares of stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable
year of 12 months or during a proportionate part of a shorter taxable year. Also, no more than 50% of the value of our outstanding
shares of capital stock may be owned, directly or indirectly, by five or fewer individuals (as defined by the Code to include certain
entities) during the last half of any taxable year.

To help us to qualify and maintain our qualification
as a REIT, among other purposes, our charter, subject to certain exceptions, contains, and the articles supplementary establishing the
Series A Preferred Stock will contain, restrictions on the number of shares of our common stock, our preferred stock, and our capital
stock that a person may own. Our charter generally restricts any person from acquiring beneficial or constructive ownership in excess
of either (i) 9.8% in value of the aggregate of the outstanding shares of our capital stock, or (ii) 9.8% in value or in number
of shares, whichever is more restrictive, of our outstanding common stock. In addition, the articles supplementary establishing the Series A
Preferred Stock will provide that generally no person may own, or be deemed to own by virtue of the attribution provisions of the Code,
either more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding Series A Preferred Stock.
Our board of directors intends to waive these restrictions, as necessary, with respect to any shares of Series A Preferred Stock
purchased by Mr. Gold in this offering.

The beneficial ownership and/or constructive ownership
rules under the Code are complex and may cause shares of stock owned actually or constructively by a group of related individuals
and/or entities to be owned constructively by one individual or entity. See “Description of Capital Stock — Restrictions on
Ownership and Transfer.”