Trading for the first cannabis-related company to gain approval from the New York Stock Exchange has been delayed, according to a Forbes report. Innovative Industrial Properties, a real estate investment trust, planned to raise $175 million through an initial public offering but dropped that goal to $100 million. They also cut their number of shares, priced at $20 per share, from 8.75 million to 4 million.
The company plans on buying facilities for cannabis cultivation and collecting the rent. A $30 million deal to buy PharmaCann’s 127,000 square-foot New York facility and rent it back to them is expected to close within months.
The company planned to begin trading last week under the symbol IIPR, but made two updates to the filing before the delay. The first announced that management might forfeit their zero-cost basis shares, and the second confirmed that they would do just that. Initially, the 5-person management team would have gotten 15 percent of the trust without using their own money.
That zero-cost plan could be one reason the IPO has, so far, failed to gain traction among investors; another possibility could be because the company does not yet own any properties. However, it could also be due to the election of Donald Trump and the naming of Republican Sen. Jeff Session as the potential Attorney General.
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