IIPR Archives - Green Market Report

StaffSeptember 21, 2023


The Daily Hit is a recap of the top financial news stories for Sept. 21, 2023.

On The Site

Innovative Industrial Properties Gets Investor Lawsuit Dismissed

An investor lawsuit that accused cannabis REIT (real estate investment trust) Innovative Industrial Properties (IIP) (NYSE: IIPR) of knowing about a fraudulent scheme by its tenant Kings Garden was dismissed by a New Jersey Judge. Read more here.

Montana Marijuana Sales Hit New Record in August

Medical and recreational marijuana sales in Montana hit a record high in August of $28.6 million, according to state data, up a notch from July when sales were $28.5 million. Read more here.

Hemp Entrepreneur Named Minnesota Marijuana Czar

The upcoming Minnesota Office of Cannabis Management now has a leader: Erin DuPree, founder of hemp goods store Loonacy Cannabis Co. in Apple Valley that sold low-dose THC products. Read more here.

The Cannabist Company Secures $25M in Private Placement

The Cannabist Company Holdings Inc. (NEO: CBST) (OTCQX: CCHWF) announced Thursday it finalized a private sale deal with institutional investors. The company sold 22.2 million units at C$1.52 each, totaling approximately C$33.8 million (US$25 million). Read more here.

Filament Brings Coca Leaves to Canada From Peru

Magdalena Biosciences, the joint venture between Filament Health (OTCQB: FLHLF) (NEO: FH) and Jaguar Health Inc., has imported coca leaves to Filament’s Vancouver, British Columbia, research facility. Read more here.

C21 Sees Positive Sales Signs as Nevada Continues to Contract

C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) reported its financials for the period ending July 31. The company logged a revenue of $7.2 million, mirroring its performance from the prior year. This comes even as the broader Nevada cannabis market saw a 5% drop in sales. Read more here.

In Other News


Up to half of the products sold in Maine’s medical cannabis market could be contaminated with pesticides, harmful microbes, yeast and mold, according to two studies released this week. Read more here.


Republican senators, including the lead GOP sponsor of a bipartisan marijuana banking bill, will soon be introducing new legislation to prevent marijuana from being federally legalized by the Food and Drug Administration (FDA) without congressional approval. Read more here.

StaffAugust 3, 2023


The Daily Hit is a recap of the top financial news stories for Aug. 3, 2023.

On The Site

Former FDA Regulator Predicts Cannabis Rescheduling This Year

A former attorney and enforcement czar at the U.S. Food and Drug Administration told Green Market Report in an exclusive interview he believes the Biden administration is poised to reschedule marijuana this year or in early 2024, and that the move won’t squeeze out smaller cannabis companies, contrary to many widespread industry fears. Read more here.

Michigan Cannabis Redevelopment Project Collapses Into Massive Lawsuit With City

A redevelopment plan with the Detroit suburb of Pontiac was slated for a $40 million cannabis-friendly business campus, but a legal battle involving bribery allegations has derailed the project. Read more here.

Military Veterans Sue New York Cannabis Regulators Over Marijuana Licensing

A new lawsuit has been filed against New York cannabis regulators, by a quartet of disabled military veterans who have been thus far shut out of retail marijuana licensing. Read more here.

Study: ‘Vast Majority’ of Hemp Delta-9 Goods Illegally Modified

The “vast majority” of delta-9 hemp goods being sold around the U.S. – upwards of 75% – have been illegally modified or sourced from marijuana, according to a new scientific study released this week by California researchers. Read more here.

Story Cannabis Co. Acquires Four-Dispensary Chain in Arizona

Arizona-based multistate operator Story Cannabis Co. announced the acquisition this week of four vertically-integrated marijuana licenses in the Phoenix metro area, bringing its homestate footprint to 11 retail shops and two cultivation facilities. Read more here.

Innovative Industrial Reports Rising Revenue

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) delivered total revenues of approximately $76.5 million in its second quarter of the year, representing an 8% increase from the prior year’s quarter. The company also reported net income of approximately $40.9 million for the quarter, or $1.44 per diluted share. Read more here.

In Other News

LEEF Brands

LEEF Brands, Inc. (CSE: LEEF) (OTC: LEEEF) has entered escrow on a $7 million purchase of 1,900-acre Salisbury Canyon Ranch in Santa Barbara, California. Read more here.


The embattled chairman of the Alabama Medical Cannabis Commission, Dr. Steve Stokes, has resigned. His resignation comes just over a week after a Montgomery attorney asked a judge to issue a writ of quo warranto, removing him from that position. Read more here.

Adam JacksonFebruary 16, 2023


Tilt Holdings (NEO: TILT) (OTCQX: TLLTF) refinanced its legacy debt and paid off nearly half of its outstanding liabilities borrowed over the years.

With $46 million worth of nonrevolving debt left on the books, the company refinanced a $38 million loan carrying a floating interest rate “at the higher of 16% or prime plus 8.5%” and extended the maturity to February 2026.

Tilt also issued $8.2 million of payment-in-kind secured promissory notes maturing in February 2027, with same interest rate as the previously mentioned refinance.

The company said that it did not receive any new proceeds as a result of the amendments to the debt facility.

“Anytime a company can reduce its long-term debt by almost 50% over a 12-month period is remarkable,” CEO Gary Santo said in a statement. “Our ability to withstand unprecedented sector headwinds and overcome the lack of access to traditional banking products and inefficient capital markets is a true testament to the strength and perseverance of our team.”

“Resolving our near-term debt maturities puts (the company) on firm footing to be able to focus on revenue growth, improving margins, exploring M&A, and executing against our strategic plan.”

Despite the Tilt’s revenue drop and lowered guidance in November’s third quarter earnings, the stock saw an uptick as investors evaluated the company’s strong cash flow performance and became bullish on its ability to meet its debt maturities successfully.

The company’s stock rose at the beginning of 2023 on news that it had retired $33.7 million of its $35.8 million principal amount of senior secured notes and extended the maturities of the remaining $2.1 million to the end of February, which the company announced today has since been paid off.

Sale-Leaseback Deal

Tilt also closed its previously announced $15 million sale-leaseback transaction with Innovative Industrial Properties (IIPR: NYSE) concerning its White Haven, Pennsylvania, facility, weeks after the company obtained a fifth amendment to its agreement with the REIT and extended the investigational period.

Tilt said that the net proceeds will be funneled towards repayment of debt and working capital.

“The reduction of (the company’s) long-term debt, together with the completion of the sale-leaseback of our Pennsylvania cultivation and manufacturing facility, aligns with our goal of remaining asset-light while maintaining a prudent capital structure,” CFO Dana Arvidson said.

TLLTF was up nearly 9% as of Thursday’s close.

Debra BorchardtJanuary 19, 2023


Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) announced that its rent collections have dropped from 100% at this time last year to just 92% for the month ending January 31, 2023. The company said it had collected 97% of its rent at the end of December. The company’s stock was plunging by over 14% on the news to lately sell at $94. This is a huge drop from the 52-week high of $211.

The cannabis REIT (Real Estate Investment Trust) outlined the various cannabis companies that have slipped in their rent payments.

Missed Rent Payments

IIP reported that SH Parent, Inc. also known as Parallel was in default on its obligations to pay rent at one of IIP’s Pennsylvania properties (approximately 2.9% of invested/committed capital). However, IIP did note that rent was paid in full through January 31, 2023, on all other IIP properties leased by Parallel.

In addition to Parallel, Green Peak Industries, Inc. (Skymint) was in default on its obligations to pay rent at one of IIP’s Michigan properties under construction (approximately 2.7% of invested/committed capital). However, rent was paid in full through January 31, 2023, on all other IIP properties leased by Skymint.

In California, Affiliates of Medical Investor Holdings, LLC (Vertical) were in default on their obligations to pay rent at IIP’s California properties (approximately 0.7% of invested/committed capital).

Lease Adjustments

IIP also made changes to some lease agreements to include cross-default provisions and/or extend lease terms in exchange for limited base rent deferrals. One California property and one Michigan property leased by Holistic (approximately 1.8% of invested/committed capital in the aggregate) have used security deposits in order to pay the leases. In addition to that, one Missouri property leased by Calyx Peak, Inc. (approximately 1.2% of invested/committed capital) received a 100% base rent deferral through March 31, 2023, with pro-rata payback over the following 12 months and an extended term of the lease, with no other adjustments to lease terms.

There is also trouble with the Kings Garden, which has said it is looking for a merger. For now Kings Garden is paying rent for the four properties in California that it continues to occupy, including rent on the capital invested in the expansion project which is a part of the lease of one of the properties. However, there are two properties that were leased to Kings Garden and it seems the company is trying to get leave. The San Bernardino property (approximately 192,000 rentable square feet), which IIP said it is actively evaluating alternative non-cannabis uses for the property due to market conditions in California and changes in the zoning of the property. The Cathedral City property (approximately 23,000 rentable square feet), which IIP said it has executed a letter of intent to lease the property and is negotiating lease terms with the potential tenant. However, IIP said there can be no assurance that it will lease the property on the terms anticipated, or at all.


IIP says it now owns 110 properties located in 19 states, representing a total of approximately 8.7 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment).  The company states that no tenant represents more than 14% of the total portfolio and no state represents more than 16% of the total portfolio. Parallel accounted for 10% of the company’s rental revenues and PharmaCann accounted for 12%. As Parallel defaulted on its debts, many were wondering if the company was continuing to pay rent on its properties and now that question has been answered. Multi-state operators (MSOs) represent 85% of the operating portfolio and public company operators represent 55% of the operating portfolio.

With regard to the balance sheet, the company stated the following:

  • 12% debt to total gross assets, with approximately $2.6 billion in total gross assets.
  • Total quarterly fixed cash interest obligation of approximately $4.2 million.
  • No secured debt.
  • No debt maturities until May 2026, other than $6.4 million principal amount of 3.75% Exchangeable Senior Notes in 2024.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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