Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 73

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 73
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 stock will not apply if our board of directors determines that it is no longer in our best
interests to continue to qualify as a REIT or that compliance with the restrictions on ownership and transfer of our stock is no longer
required in order for us to qualify as a REIT.

If any transfer of shares of our stock would
result in shares of our stock to be beneficially owned by fewer than 100 persons, such transfer will be void from the time of such purported
transfer and the intended transferee will acquire no rights in such shares. In addition, if any purported transfer of shares of our stock
or any other event would otherwise result in:

| · | any person violating the ownership limits or such other 
 limit established by our board of directors; or         |

| · | our company to be “closely held” under                                                                           
 Section 856(h) of the Code (without regard to whether the stockholder’s interest is held during the last half of 
 a taxable year) or otherwise failing to qualify as a REIT,                                                       |

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then that number of shares (rounded up to
the nearest whole share) that would cause us to violate such restrictions will automatically be transferred to, and held by, a charitable
trust for the exclusive benefit of one or more charitable organizations selected by us, and the intended transferee will acquire no rights
in such shares. The transfer will be deemed to be effective as of the close of business on the business day prior to the date of the
transfer in violation of the ownership limit or other event that results in the transfer to the charitable trust. A person who, but for
the transfer of the shares to the charitable trust, would have beneficially or constructively owned the shares so transferred, or a “prohibited
owner,” which, if appropriate in the context, also means any person who would have been the record owner of the shares that the
prohibited owner would have so owned. If the transfer to the charitable trust as described above would not be effective, for any reason,
to prevent violation of the applicable restriction on ownership and transfer contained in our charter, then our charter provides that
the transfer of the shares will be void from the time of such purported transfer.

Shares of stock transferred to a charitable trust
are deemed offered for sale to us, or our designee, at a price per share equal to the lesser of (1) the price paid per share
in the transaction that resulted in such transfer