Innovative Industrial Properties Inc. (NYSE: IIPR) entered the markets relatively quietly on Thursday. The company priced its offering at $20 per share for its 4 million shares, with an overallotment option for an additional 600,000 shares. However the stock entered the market at $20.25, and it quickly dropped to below the $20 mark. At the $20 price, the entire offering is valued up to $92 million.

The underwriters for the offering are Ladenburg Thalmann and Compass Point.

There have been a few other marijuana related companies that have entered the market, but this one is entirely different. While most of the other companies are focusing on the direct medical application of cannabis, IIP is focusing more on the growth operation, specifically property management. Ultimately, the company intends to elect and to operate its business so as to qualify to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

This is a newly formed, self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.

Initially, the firm intends to acquire its properties through sale-leaseback transactions and third-party purchases. IIP expects to lease its properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including structural repairs, maintenance, taxes and insurance.

IIP does not currently own any properties. It plans to finance growth through the application of the net proceeds of this offering, and, when necessary, through additional equity and debt offerings. The firm currently anticipates that the average size of its investments will range from $5 million to $30 million and will involve between 25,000 and 150,000 square feet of space.

Shares of IIP were last seen at $19.69, with a range of $19.51 to $20.52 on the day in the noon hour Eastern time. Just over 700,000 shares had moved on the day thus far.

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