Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 39

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 39
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 (y) if our common stock is not then listed for trading on a U.S. securities exchange, the average of the last
quoted bid prices for our common stock in the over-the-counter market as reported by OTC Markets Group, Inc. or similar organization
for the ten consecutive trading days immediately preceding, but not including, the effective date of the Change of Control/Delisting.

Series A Preferred Stock as to which the
Change of Control/Delisting Conversion Right has been properly exercised and for which the conversion notice has not been properly withdrawn
will be converted into the applicable Conversion Consideration in accordance with the Change of Control/Delisting Conversion Right on
the Change of Control/Delisting Conversion Date, unless prior to the Change of Control/Delisting Conversion Date we have provided or provide
notice of our election to redeem such Series A Preferred Stock, whether pursuant to our optional redemption right or our special
optional redemption right. If we elect to redeem Series A Preferred Stock that would otherwise be converted into the applicable Conversion
Consideration on a Change of Control/Delisting Conversion Date, such Series A Preferred Stock will not be so converted and the holders
of such shares will be entitled to receive on the applicable redemption date $25.00 per share, plus an amount equal to all accrued but
unpaid dividends thereon to, but not including, the redemption date, in accordance with our optional redemption right or special optional
redemption right. See “— Optional Redemption” and “— Special Optional Redemption” above.

| S-25 |

We will deliver amounts owing upon conversion
no later than the third business day following the Change of Control/Delisting Conversion Date.

In connection with the exercise of any Change
of Control/Delisting Conversion Right, we will comply with all federal and state securities laws and stock exchange rules in connection
with any conversion of Series A Preferred Stock into shares of our common stock. Notwithstanding any other provision of the Series A
Preferred Stock, no holder of Series A Preferred Stock will be entitled to convert such Series A Preferred Stock into shares
of our common stock to the extent that receipt of such common stock would cause such holder (or any other person) to exceed the share
ownership limits contained in our charter, including the articles supplementary setting forth the terms of the Series A Preferred
Stock, unless we provide an exemption from this limitation for such holder. See “— Restrictions on Ownership and Transfer”
below.

The Change of Control/Delisting conversion feature
may make it more difficult