IIPR successfully raises debt through senior notes
Last week, Innovative Industrial Properties (IIPR) offered $125 million in senior notes, giving initial investors the option to exercise $18.75 million in additional principal amount notes. The $18.75 million in notes were fully exercised.
IIPR issued $143.75 million in notes, leaving it with $138.4 million after accounting for discounts and expenses. The senior notes carry a coupon rate of 3.75% and are due in 2024. The net proceeds from the offer will be used for general corporate purposes and to invest in specialized industrial real estate assets to support the cultivation of regulated cannabis.
Last week, IIPR rose ~12.3% and closed at $72.99, 44.4% above its 100-day moving average of $50.53—a bullish sign. Year-to-date, the stock has risen 59.0%. However, the company’s 14-day RSI (relative strength index) score is 71, suggesting the stock could see some sell-off. An RSI score above 70 indicates a stock is overbought.
Last week, IIPR underperformed the ETFMG Alternative Harvest ETF (J), which gained ~2.4%. Cronos Group (CRON), Canopy Growth (CGC), and Aurora Cannabis (ACB) comprise 8.6%, 7.0%, and 7.1% of MJ, respectively.