Innovative Industrial Properties Inc. (NYSE: IIPR) shares dropped to close out the week after the company priced its secondary offering at a discount to its current price level. The price represents roughly an 8% discount to Thursday’s closing price.

In the offering, the company intends to price 2,967,799 shares of common stock at $73.25 apiece, expecting gross proceeds of roughly $217.4 million. There is an overallotment option for an additional 445,170 shares. All shares are being sold by the company.

Note that the shares being offered here represent about 22% of those outstanding.

BTIG is acting as sole book-running manager for the offering. Compass Point Research & Trading and Ladenburg Thalmann are acting as co-lead managers for the offering. Roth Capital Partners is acting as a co-manager for the offering.

The company intends to use the net proceeds from the offering to invest in specialized industrial real estate assets that support the regulated medical-use cannabis cultivation and processing industry and for general corporate purposes.

Innovative Industrial Properties is an internally managed real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.

Innovative Industrial Properties stock was last seen down nearly 2% at $78.03 a share, in a 52-week range of $58.01 to $139.53. The consensus price target is $140.50.

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