Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 51

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 51
---
 forward sale agreement if we have no then-current use for all or a portion of the net proceeds
that we would receive upon physical settlement. In addition, subject to certain conditions, we may elect to accelerate the settlement
of all or a portion of the number of shares of our common stock underlying a particular forward sale agreement.

If we elect to physically
settle any forward sale agreement by issuing and delivering shares of our common stock, we will receive an amount of cash from the relevant
Forward Purchaser equal to the product of the forward sale price per share under that particular forward sale agreement and the number
of shares of our common stock underlying the particular forward sale agreement. In the event that we elect to cash settle, the settlement
amount will be generally related to (i) (a) the average of the volume-weighted average price of our common stock on each exchange
business day during the relevant valuation period under the particular forward sale agreement minus (b) the applicable forward sale
price; multiplied by (ii) the number of shares of our common stock underlying the particular forward sale agreement subject to cash
settlement. In the event we elect to net share settle, the settlement amount will be generally related to (i) (a) the weighted
average price at which the relevant Forward Purchaser or its affiliate purchases shares of our common stock during the relevant valuation
period for such settlement under that particular forward sale agreement minus (b) the applicable forward sale price; multiplied by
(ii) the number of shares of our common stock underlying that particular forward sale agreement subject to such net share settlement.
If this settlement amount is a negative number, the relevant Forward Purchaser will pay us the absolute value of that amount (in the case
of cash settlement) or deliver to us a number of shares of our common stock having a value, determined pursuant to the terms of the relevant
forward sale agreement, equal to the absolute value of such amount (in the event of net share settlement). If this settlement amount is
a positive number, we will pay the relevant Forward Purchaser that amount (in the case of cash settlement) or deliver to the relevant
Forward Purchaser a number of shares of our common stock having a value, determined pursuant to the terms of the relevant forward sale
agreement, equal to such amount (in the event of net share settlement). In connection with any cash settlement or net share settlement,
we would expect the relevant Forward Purchaser or its affiliate to purchase shares of our common stock in secondary market transactions
for