Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 100

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 100
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(ii) an officer of the corporation or (iii) an employee of the corporation who is also a director of the corporation. “Control
shares” are voting shares of stock which, if aggregated with all other such shares of stock owned by the acquirer, or in respect
of which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would
entitle the acquirer to exercise voting power in electing directors within one of the following ranges of voting power: (i) one-tenth
or more but less than one-third; (ii) one-third or more but less than a majority; or (iii) a majority or more of all voting
power. Control shares do not include shares that the acquiring person is then entitled to vote as a result of having previously obtained
stockholder approval or shares acquired directly from the corporation. A “control share acquisition” means the acquisition
of issued and outstanding control shares, subject to certain exceptions.

A person who has made or proposes to make a control
share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and delivering an “acquiring
person statement” as described in the MGCL), may compel the board of directors to call a special meeting of stockholders to be
held within 50 days of demand to consider the voting rights of the shares. If no request for a meeting is made, the corporation may itself
present the question at any stockholders meeting.

If voting rights are not approved at the meeting
or if the acquiring person does not deliver an “acquiring person statement” as required by the statute, then, subject to
certain conditions and limitations, the corporation may redeem any or all of the control shares (except those for which voting rights
have previously been approved) for fair value determined, without regard to the absence of voting rights for the control shares, as of
the date of the last control share acquisition by the acquirer or as of any meeting of stockholders at which the voting rights of such
shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes
entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the
shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquirer in the
control share acquisition.

The control share acquisition statute