IIPR stock continues to move higher on Wednesday after Innovative Industrial Properties Inc (NYSE:IIPR) announced on Tuesday that it has entered into another sale-leaseback deal with cannabis company Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF). IIP is a real estate investment trust and primarily works with the cannabis industry.
Impressive Deal
In a sale-leaseback deal, Innovative Industrial Properties purchases a facility from a cannabis company and then leases it back. It has become a particularly popular method of raising capital for many cannabis companies, and Cresco Labs managed to raise $10.5 million from the latest deal. The property in question spans 50,000 square feet and is located in Yellow Springs. The $10.5 million also includes funds earmarked for tenant improvements.
In this regard, it should be noted that Innovative Industrial Properties and Cresco Labs have done similar deals in the past. Cresco made similar deals for two of its properties in Illinois; this is the first property in Ohio that is at the center of such a deal.
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Cannabis companies have often found it difficult to raise capital, so sale-leaseback deals have become increasingly popular in the sector. IIP has benefited significantly by virtue of such deals, and after the latest deal, it now boasts of as many as 48 properties spread across 15 states.
After the announcement of the deal, IIPR stock rose by as much as 9% on Tuesday. The stock is up another 1% this morning.
However, that is not all. Innovative Industrial Properties made another important announcement on Tuesday. The company released information about its latest fundraising initiative. It revealed that a secondary share issue has been closed and that the company managed to raise as much as $250 million from it. The company made the original announcement about the secondary issue earlier in January.
The issue actually raised more for the company than what had been expected by IIP. The company floated as many as 2 million shares for the offering, and on top of that, another 300,000 shares were issued to the underwriters of the issue.
IIPR stock has soared over 25% so far this month.
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