Innovative Industrial Properties Announces Exercise of Option to Purchase Additional Shares of Common Stock

Innovative Industrial Properties, Inc. (the “Company”) (NYSE: IIPR) announced today the full exercise of the underwriters’ option to purchase an additional 195,000 shares of common stock in connection with the Company’s recent equity offering. The sale of the additional shares closed today, July 18, 2019, and the original public offering of 1,300,000 shares of common stock closed on July 16, 2019. In total, the Company sold 1,495,000 shares of common stock in the offering, raising gross offering proceeds of approximately $188.4 million.
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Maintained Legalization Efforts Yield Another Win for the Cannabis Market

Recently, Illinois became the 11th U.S. state, including the District of Columbia, to legalize cannabis entirely. Illinois’ decision came not too long after Michigan approved its own legislation to legalize cannabis back in November 2018, during the U.S. midterm elections. While only a fifth of the U.S. has legalized cannabis, the marketplace accounts for a majority of the global cannabis market share. Primarily, the U.S. is driven by a handful of states including California, Colorado, and Washington. And these three states, in particular, were among the first states to venture into the cannabis industry. Now, these states are responsible for collectively driving in billions of dollars in cannabis sales each year. In recent times, cannabis legalization has been on the agenda of many U.S. politicians whether for medical or recreational use. However, the U.S. Senate still remains uncertain on the matter. Nonetheless, states have been given the jurisdiction to legalize cannabis or decide to keep it regulated. Overall, the market has also been a prevalent force on the global scale, yet, most analysts tend to focus on the U.S. market because of the attractive opportunities the country presents. Barclays analysts have speculated that if the U.S. cannabis market was legalized today, it could be worth roughly USD 28 Billion. Furthermore, Barclays predicts that the market will grow to USD 41 Billion by 2028 on a pre-tax basis. Barclays had compiled data from a 2017 survey that indicated that approximately 26 million Americans above the age of 12 “were users of marijuana,” or nearly 10% of the total U.S. population. At USD 41 Billion, the cannabis market “could generate almost USD 28 Billion of tax revenues across all levels of government,” said Barclays. The firm examined data from Colorado, Washington and Nevada and highlighted that tax revenues from cannabis have already surpassed alcohol tax revenues, and in the case of Colorado, already exceeded tobacco tax revenues. While the U.S. is a major growth driver for the global industry, it is important to note that more and more countries around the world are also beginning to legalize cannabis, predominantly for medical purposes. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Innovative Industrial Properties, Inc. (NYSE: IIPR), Greenlane Holdings, Inc. (NASDAQ: GNLN), Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE)

MJardin Group Announces Closing of Sale-Leaseback Transaction for US$9.6 million

MJardin Group, Inc. (“MJardin” or “the Company”) (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced it has closed a sale-leaseback agreement with Innovative Industrial Properties (“IIP”) (NYSE:IIPR) worth an estimated value of US$9.6 million (excluding transaction costs) of its Cheyenne Ave., Las Vegas, Nevada production facility owned by the Company (the “Facility”).
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Innovative Industrial Properties Prices Public Offering of 1,300,000 Shares of Common Stock

Innovative Industrial Properties, Inc. (the “Company”) (NYSE: IIPR) announced today the pricing of an underwritten public offering of 1,300,000 shares of its common stock at $126.00 per share for gross proceeds of $163.8 million. The offering is expected to close on or about July 16, 2019, subject to customary closing conditions. The Company has also granted the underwriters a 30-day option to purchase up to an additional 195,000 shares of its common stock. All of the shares are being sold by the Company.
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Consumer Entry into the Cannabis Market Spikes Post Legalization

Within the first quarter of legalization, 5.3 million or 18% of Canadian ages 15 years and older reported using cannabis, according to Statistics Canada. Following legalization, a large number of new users were willing to try cannabis solely because it was legalized and readily accessible. However, a year prior to legalization, only around 14% of Canadians reported using the plant. During the quarter, approximately 646,000 of the users reported trying cannabis for the first time, rising dramatically when compared to 327,000 users a year prior. Overall, the rise year-over-year is largely due to the abundance of male users between the ages of 45 to 64. Generally, within that age group, adults tend to use cannabis for medical purposes, largely due to medical conditions associated with aging. For instance, cases such as chronic pain, Alzheimer’s, and Parkinson’s are typically associated with the older generation. And through extensive studies, researchers have discovered that cannabis can be used to treat these and several other medical conditions. Furthermore, based on gender, a more significant amount of males used cannabis when compared to females and it was estimated that 22.3% of Canadian males used cannabis compared to only 12.7% of females. Now, while the large increase in users is largely attributable to the older generation, cannabis is also much more prevalent among the younger generation. Statistics Canada reported that 29.5% of Canadians ages 15 to 24 years old used cannabis in the first quarter. Similarly, approximately 28.7% of Canadians ages 25 to 34-year-olds also used cannabis during the quarter. While the adoption of cannabis grew among Canadians, it is important to remember that the market is still maturing. And despite its legalization, there are still many legal barriers imposed on the market, restricting the growth of businesses. Nonetheless, the market is projected to continually grow throughout the shortcoming years, developing into a global industry leader. And according to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Innovative Industrial Properties, Inc. (NYSE: IIPR), KushCo Holdings, Inc. (OTC: KSHB), Valens GroWorks Corp. (OTC: VGWCF) (CSE: VGW), Harvest Health & Recreation, Inc. (OTC: HRVSF) (CSE: HARV)

First Time Users and Young Adults Choose Cannabis Over Cigarettes

Most regions around the world allow young adults at the age of 18 to enjoy or purchase their own alcohol and tobacco. However, the U.S. has strictly enforced that adults must be 21 years old or older in order to purchase alcohol. Meanwhile, some parts of the U.S. have also implemented a mandated age of 21 years or older to purchase tobacco. The U.S. government strongly believed that if the minimum age requirement was raised to 21 it would reduce the number of young adults drinking or smoking. However, Mike Males, a Senior Researcher for San Francisco’s Center on Juvenile and Criminal Justice, highlighted that changing the age limit has little to no effect in the reduction of underage users. Additionally, teenagers are more likely to obtain their supply from an illegal source and consequently, teenagers are more likely to drink or smoke in excess. Similarly, as the legal cannabis market begins to take off, lawmakers are approaching the industry with caution. In U.S. states where cannabis is legal for adult-use strictly only allow adults 21 years old and over to purchase any cannabis-based products. On the other hand, Canada allows consumers 18 years old and older (19 years old in some provinces) to purchase cannabis-based products. The age difference between the two countries allows Canada to minimize the illicit trade market. Additionally, setting the legal age at 18 years old would also open a whole new demographic of young adults, expanding the market penetration even further. Following Canada’s complete legalization of cannabis, the adult use market is positioned to become a major growth factor for the overall industry. In 2018, adult use cannabis sales totaled USD 112.5 Million and are projected to reach USD 4.8 Billion by 2024. Furthermore, the medical cannabis segment is expected to decline at a CAGR of 3% at the legal adult use market continues to ramp up over the next shortcoming years. According to data compiled by ArcView Market Research and BDS Analytics, the overall Canadian legal cannabis market was valued at USD 569 Million in 2018. By 2024, the market is expected to reach USD 5.2 Billion while accelerating at an explosive CAGR of 44.4%. MediPharm Labs Corp. (OTC: MEDIF) (TSX-V: LABS), Innovative Industrial Properties, Inc. (NYSE: IIPR), Tilray, Inc. (NASDAQ: TLRY), Akerna Corp. (NASDAQ: KERN), Pyxus International Inc. (NYSE: PYX)