First NYSE Cannabis Company IPO Off To Rough Start
On December 1st, Innovative Industrial Properties (NYSE: IIPR), a real estate investment trust that plans to buy buildings and lease them to growers of medical marijuana, went public on the New York Stock Exchange.
The company closed a $67 million initial public offering of 3,350,000 shares of common stock at a public offering price of $20.00 per share. Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS), and Compass Point Research & Trading LLC served as joint book-running managers for the offering. National Securities Corporation and Aegis Capital Corp. served as co-managers for the offering.
Innovative Industrial Properties (NYSE: IIPR) joins the select few US cannabis companies listed on national exchanges. NYSE or NASDAQ listings are few compared to the approximately 100 cannabis stocks traded on the OTC Markets. David Feldman of Duane Morris LLP points out that “this new listing is still very big for the industry, especially after Nasdaq’s very strong refusal to list MassRoots earlier this year, making clear it is because the company may be aiding and abetting a federal crime.”
Innovative Industrial Properties (NYSE: IIPR) stock hasn’t performed well in the days following its IPO. On December 5th, IIPR closed at $15.40, down nearly 20% from its IPO price.