Innovative Industrial Properties to make investment totaling $270M into IQHQ

Innovative Industrial Properties (IIPR) announced that it entered into agreements to make an investment totaling up to $270 million into IQHQ. The investment is comprised of two discrete investments that together are expected to earn a weighted average interest rate of greater than 14% per annum: A $100 million commitment to a revolving credit facility with an initial term of three years, which can be extended for an additional 12 months upon payment of an extension fee. The RCF will be fully funded upfront, with closing subject to customary approvals. A commitment to purchase up to $170 million of preferred stock of IQHQ. The Preferred Stock investment is expected to be funded in multiple tranches between the third quarter of 2025 and the second quarter of 2027, subject to extensions at the option of IQHQ. Warrants in IQHQ, subject to the satisfaction of certain funding milestones of the Preferred Stock.