24 Oct Cannabis Related Company Applies to NYSE for IPO

Innovative Industrial Properties Inc. is planning to be a real estate investment trust. Its mission, as disclosed in its SEC filing last week for its planned IPO, is to be “focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.” The big news: they’ve applied to list the stock they’re offering on the New York Stock Exchange (NYSE). The well-known firm of Ladenburg Thalmann is acting as lead underwriter. Major national law firms are also on the filing.

As we know, back in May, the “Facebook of cannabis,” MassRoots, was rejected in its attempt to uplist to Nasdaq. That exchange said the reason for the rejection was the company could be seen as aiding and abetting a federal crime. Could it be different down at 11 Wall Street? Maybe! The company’s filing says throughout that they’ve applied to NYSE. My gut tells me the exchange might not let them even mention the application if their plan was to turn it down. It might be enough for them that there is substantial disclosure about the risks under federal law of the company’s business, including right on the cover of the filing.

If the SEC allows these businesses to be public, it seems logical that the national exchanges should allow them to trade, again, so long as there is proper disclosure and the companies otherwise qualify under the exchange’s listing standards. With the anticipated dramatic growth in the cannabis industry, and over 200 public companies already in the space, it would be great to allow emerging cannabis companies the chance for all the greater benefits that can come with a national exchange listing. Go IIPI!