Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 38

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 38
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 to our transfer agent. The conversion notice
must state:

| · | the relevant Change of Control/Delisting Conversion Date; |

| · | the number of shares of Series A Preferred Stock to be converted; and |

| · | that the Series A Preferred Stock is to be converted pursuant to the Change of Control/Delisting Conversion Right held by holders 
 of Series A Preferred Stock.                                                                                                      |

Holders of shares of Series A Preferred Stock
may withdraw any notice of exercise of a Change of Control/Delisting Conversion Right (in whole or in part) by a written notice of withdrawal
delivered to the transfer agent prior to the close of business on the business day prior to the Change of Control/Delisting Conversion
Date. The notice of withdrawal must state:

| · | the number of withdrawn shares of Series A Preferred Stock; |

| · | if certificated shares of Series A Preferred Stock have been issued, the certificate numbers of the withdrawn shares of Series A 
 Preferred Stock; and                                                                                                             |

| · | the number of shares of Series A Preferred Stock, if any, which remain subject to the conversion notice. |

Notwithstanding the foregoing, if the shares of
Series A Preferred Stock are held in global form, the conversion notice and/or the notice of withdrawal, as applicable, must comply
with applicable procedures of DTC.

We will not issue fractional shares of common
stock upon the conversion of the Series A Preferred Stock. Instead, we will pay the cash value of any fractional share otherwise
due, computed on the basis of the applicable Common Stock Price.

The “Common Stock Price” will be (i) if
the consideration to be received in the Change of Control/Delisting by the holders of our common stock is solely cash, the amount of cash
consideration per share of our common stock, or (ii) if the consideration to be received in the Change of Control/Delisting by holders
of our common stock is other than solely cash, (x) the average of the closing sale prices per share of our common stock (or, if no
closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the
average closing bid and the average closing ask prices) for the ten consecutive trading days immediately preceding, but not including,
the effective date of the Change of Control/Delisting as reported on the principal U.S. securities exchange on which our common stock
is then traded, or