Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 19

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 19
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 physical settlement of a particular forward sale agreement will be subject to adjustment on a daily basis
based on a floating interest rate factor equal to a specified daily rate less a spread and will be decreased based on amounts related
to expected dividends on shares of our common stock during the term of the particular forward sale agreement. If the specified daily rate
is less than the spread on any day, the interest rate factor will result in a daily reduction of the applicable forward sale price. If
the market value of our common stock, determined in accordance with the terms of the relevant forward sale agreement, during the relevant
valuation period under the particular forward sale agreement is above the applicable forward sale price, in the case of cash settlement,
we would pay the relevant Forward Purchaser under that particular forward sale agreement an amount in cash equal to the difference or,
in the case of net share settlement, we would deliver to the relevant Forward Purchaser a number of shares of our common stock having
a value, determined in accordance with the terms of the relevant forward sale agreement, equal to the difference. Thus, we could be responsible
for a potentially substantial cash payment in the case of cash settlement of a particular forward sale agreement. See “Plan of Distribution”
for information on the forward sale agreements.

In case of our bankruptcy or insolvency, any forward sale agreement will automatically terminate, and we would not receive the expected proceeds from any forward sales of our common stock.

If we institute, or a
regulatory authority with jurisdiction over us institutes, or we consent to a proceeding seeking a judgment in bankruptcy or insolvency
or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or we or a regulatory
authority with jurisdiction over us presents a petition for our winding-up or liquidation, and we consent to such a petition, any forward
sale agreement that is then in effect will automatically terminate. If any such forward sale agreement so terminates under these circumstances,
we would not be obligated to deliver to the relevant Forward Purchaser any shares of our common stock not previously delivered, and the
relevant Forward Purchaser would be discharged from its obligation to pay the applicable forward sale price per share in respect of any
shares of our common stock not previously settled under the applicable forward sale agreement. Therefore, to the extent that there are
any shares of our common stock with respect to which any forward sale agreement has not been settled at the time of the commencement of
any such bankruptcy or insolvency proceedings, we would not receive the relevant forward