Innovative Industrial Properties (IIPR -0.37%) has shut the lid on its latest fund-raising effort. The company said in a press release published on Tuesday that it closed a secondary share issue, from which it raised gross proceeds of roughly $250 million.
The company, which is a real estate investment trust (REIT) concentrating entirely on properties used by the cannabis industry, brought in more than it originally anticipated. When first announced earlier this month, Innovative said it was floating 2 million shares of its common stock to the public, and offering an additional 300,000 to the issue's underwriters in a 30-day option.
Innovative ended up increasing the size of the sale considerably, to 2,967,799 shares in the public offering. The underwriter option component was also upsized, to 445,170 shares, so the grand total is just over 3.4 million. The company said the underwriters fully exercised their option, snapping up all the shares.
The underwriting syndicate is relatively small and consists of smaller investment banks rather than the usual large financial services companies that typically help float stock issues. It's led by privately held BTIG and includes fellow private companies Compass Point Research & Trading and Roth Capital Partners. The only publicly traded member of the syndicate is Ladenburg Thalmann Financial Services.
The per-share price of the stock issue was $73.25.
Innovative hasn't provided a host of detail on how the proceeds will be used. The REIT has said it will "invest in specialized industrial real estate assets that support the regulated cannabis cultivation and processing industry that are consistent with its investment strategy, and for general corporate purposes."
Investors greeted news of Innovative's closing of this issue positively. On Tuesday, the marijuana stock closed up by almost 9%.