Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 49

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 49
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in an escrow, trust or similar arrangement.

Sales Through Forward Sellers

From time to time during
the term of the equity distribution agreements, and subject to the terms and conditions set forth therein and in the related forward sale
agreements, we may deliver a placement notice relating to a forward to any of the Forward Sellers and the relevant Forward Purchaser.
Upon acceptance of a placement notice from us requesting that the Forward Seller execute sales of shares of borrowed common stock in connection
with a forward sale agreement, and subject to the terms and conditions of the relevant equity distribution agreement and the forward sale
agreement, the relevant Forward Purchaser will use commercially reasonable efforts to borrow, and the relevant Forward Seller will use
commercially reasonable efforts consistent with its normal trading and sales practices to sell, the relevant shares of our common stock
on such terms to hedge the relevant Forward Purchaser’s exposure under that particular forward sale agreement. We or the relevant
Forward Seller may immediately suspend the offering of our common stock at any time upon proper notice to the other.

We expect that settlement
between the relevant Forward Purchaser and Forward Seller of sales of borrowed shares of our common stock, as well as the settlement between
the relevant Forward Seller and buyers of such shares of our common stock in the market, will generally occur on the standard settlement
cycle then in-effect. The obligation of the relevant Forward Seller under the relevant equity distribution agreement to execute such sales
of our common stock is subject to a number of conditions, which each Forward Seller reserves the right to waive in its sole discretion.

In connection with each
forward sale agreement, we will pay the relevant Forward Seller, in the form of a reduced initial forward sale price under the related
forward sale agreement with the related Forward Purchaser, commissions at a mutually agreed rate that will not exceed, but may be lower
than, 2.0% of the gross sales price of all borrowed shares of common stock sold by it as a Forward Seller. We refer to this commission
rate as the forward selling commission. The borrowed shares will be sold during a period of one to 20 consecutive trading days determined
by us in our sole discretion and as specified in the relevant placement notice (with such period subject to early termination in certain
circumstances).

The forward sale price
per share under each forward sale agreement will initially equal the product of (i) an amount equal to one minus the applicable forward
selling commission and (ii) the volume-weighted average price per share at which the shares