Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 15

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 15
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 the market
price of the Series A Preferred Stock.

If our common stock is delisted, your ability to transfer or sell your Series A Preferred Stock may be limited and the market value of the Series A Preferred Stock will be materially adversely affected.

Other than in connection
with certain change of control transactions, the Series A Preferred Stock does not contain provisions that protect you if our common
stock is delisted. Since the Series A Preferred Stock has no stated maturity date, you may be forced to hold your shares of the Series A
Preferred Stock and receive stated dividends on the stock when, as and if authorized by our board of directors and declared by us with
no assurance as to ever receiving the liquidation preference. In addition, if our common stock is delisted, it is likely that the Series A
Preferred Stock will be delisted as well. Accordingly, if our common stock is delisted, your ability to transfer or sell your shares of
the Series A Preferred Stock may be limited and the market value of the Series A Preferred Stock will be materially adversely
affected.

Our ability to pay dividends or redeem shares is limited by the requirements of Maryland law.

Our ability to pay dividends
on the Series A Preferred Stock or redeem shares is limited by the laws of Maryland. Under applicable Maryland law, a Maryland corporation
generally may not make a distribution (including a dividend or redemption) if, after giving effect to the distribution, the corporation
would not be able to pay its debts as the debts become due in the usual course of business, or the corporation’s total assets would
be less than the sum of its total liabilities plus, unless the corporation’s charter provides otherwise, the amount that would be
needed, if the corporation were dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of stockholders
whose preferential rights are superior to those receiving the distribution. Accordingly, we generally may not make a distribution on the
Series A Preferred Stock if, after giving effect to the distribution, we would not be able to pay our debts as they become due in
the usual course of business or our total assets would be less than the sum of our total liabilities plus, unless the terms of such class
or series provide otherwise, the amount that would be needed to satisfy the preferential rights upon dissolution of the holders of shares
of any class or series of preferred stock then outstanding, if any, with preferences senior to those of the Series A Preferred Stock.
Any dividends or redemption payments may be delayed or prohibited