Innovative Industrial Properties Expands Real Estate Partnership with PharmaCann at Massachusetts Property

Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it entered into amendments of the lease and development agreement with a subsidiary of PharmaCann LLC (PharmaCann) at the property located at 465 Hopping Brook Road in Holliston, Massachusetts, making available an additional $8.0 million in funding for additional expansion of PharmaCann’s regulated cannabis cultivation and processing facilities at the property. The lease amendment also adjusted the base rent under the lease to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $26.5 million.

IIP originally acquired the Massachusetts property and entered into a long-term lease with PharmaCann in 2018, prior to commencement of construction. With this additional funding, PharmaCann expects to further enhance systems to significantly expand production capacity at the property. In addition to the Massachusetts property, IIP acquired and executed leases with PharmaCann for its medical-use cannabis cultivation and processing facilities in New York, Ohio and Pennsylvania, with the Pennsylvania transaction closing last month.

PharmaCann is a leading multi-state cannabis operator with licenses in Illinois, Maryland, Massachusetts, New York, Pennsylvania, Ohio and Virginia.

“PharmaCann is one of the leading multi-state operators, and we are very happy to continue to support them as their go-to real estate partner for their mission-critical facilities,” said Paul Smithers, President and Chief Executive Officer of IIP. “We look forward to completion of our development projects with PharmaCann and continuing to support their growth in these states and beyond.”

“We are extremely pleased to team again with IIP on this planned enhancement of our cultivation and processing facility in Massachusetts,” said Brett Novey, PharmaCann’s Chief Executive Officer. “IIP has been our long-term real estate capital partner since 2016, and has played a key role for us to grow and achieve the scale we are targeting. Massachusetts presents a tremendous opportunity, and we look forward to bringing our highest quality products to residents throughout the Commonwealth.”