Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 75

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 75
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 by us that shares of stock have been transferred to a charitable trust, such shares of stock are
sold by a prohibited owner, then such shares will be deemed to have been sold on behalf of the charitable trust and to the extent that
the prohibited owner received an amount for or in respect of such shares that exceeds the amount that such prohibited owner was entitled
to receive, such excess amount will be paid to the charitable trust upon demand by the charitable trustee. The prohibited owner will
have no rights in the shares held by the charitable trust.

The charitable trustee will be designated by
us and will be unaffiliated with us and with any prohibited owner. Prior to the sale of any shares by the charitable trust, the charitable
trustee will receive, in trust for the charitable beneficiary, all distributions made by us with respect to such shares and may also
exercise all voting rights with respect to such shares. Any dividend or other distribution paid prior to our discovery that shares of
stock have been transferred to the charitable trust will be paid by the recipient to the charitable trust upon demand by the charitable
trustee. These rights will be exercised for the exclusive benefit of the charitable beneficiary.

Subject to Maryland law, effective as of the
date that the shares have been transferred to the charitable trust, the charitable trustee will have the authority, at the charitable
trustee’s sole discretion:

| · | to rescind as void any vote cast by a prohibited owner                                    
 prior to our discovery that the shares have been transferred to the charitable trust; and |

| · | to recast the vote in accordance with the desires of                         
 the charitable trustee acting for the benefit of the charitable beneficiary. |

However, if we have already taken irreversible
action, then the charitable trustee may not rescind and recast the vote.

If our board of directors determines in good
faith that a proposed transfer would violate the restrictions on ownership and transfer of our stock set forth in our charter, our board
of directors may take such action as it deems advisable to refuse to give effect to or to prevent such transfer, including, but not limited
to, causing us to redeem shares of stock, refusing to give effect to the transfer on our books or instituting proceedings to enjoin the
transfer.

Every owner of more than 5% (or such lower percentage
as required by the Code or the regulations promulgated thereunder) of the outstanding shares of all classes or series of our stock, including
common stock, will be required to give written notice to