Innovative Industrial Properties reports resolution to default by PharmaCann

Innovative Industrial Properties (IIPR)has reached an agreement with PharmaCann and its affiliates to resolve PharmaCann’s existing defaults under leases for eleven properties that the company owns. The key terms of the agreement between PharmaCann and IIP are as follows: IIP fully utilized security deposits held by it under all Leases for the payment in full of defaulted rent for December 2024 and January 2025 and certain penalties; IIP entered into amendments with PharmaCann with respect to nine of the Leases for properties located in New York, Illinois, Pennsylvania, Ohio, and Colorado. IP entered into amendments with PharmaCann with respect to two of the Leases for cultivation properties in Michigan and Massachusetts. Additional equity capital is being contributed to PharmaCann by certain of PharmaCann’s current investors. PharmaCann agreed that, except for refinancing the existing senior secured credit facility and the additional equity investments, it may not incur additional indebtedness without IIP’s consent until full repayment of the Note or its cancellation. If PharmaCann is not able to refinance its existing senior secured credit facility maturing June 30, all modifications to the Leases described herein will immediately be null and void and the Leases will revert to the terms in effect as of January 1, 2025 and the Note will be cancelled.