A Marijuana REIT Is About To Hit The Market

Investors have been looking to profit from marijuana stocks for the past few years as the industry is gaining from more lax restrictions and an increase in public support.

In fact, several states will vote in the upcoming election to legalize or regulate marijuana sales to the public.

Regardless of the election outcome, the New York Stock Exchange has already approved the initial public offering for the first ever real estate investment trust (REIT) linked to the cannabis industry.

Innovative Industrial Properties: The First Cannabis REIT

According to Alan Brochstein, the founder of New Cannabis Ventures, Innovative Industrial Properties revised its S-11 registration on Monday and confirmed the NYSE approved its REIT's listing under the stock symbol "IIPR."

The company expects to raise $175 million through its initial public offering by selling 8.75 million shares at $20, which values the company at $202 million.

Investors looking for specific companies to invest in, rather than an REIT, could consider these stocks instead.

According to the company's filing, Innovative Industrial Properties is an REIT focused on the acquisition, ownership and management of specialized industrial properties that are leased to state-licensed operators for their regulated medical-use cannabis facilities.

The company is also classified as an "emerging growth company" under federal securities laws. As part of the regulatory process, Innovative Industrial Properties needs to disclose several risks involved.

Risks

Risks include the fact that the company has no operating history and may not be able to operate successfully or generate sufficient cash flow. The company has also identified only one property to acquire and has not entered into any binding contract or commitment to acquire any other specific property.