Innovative Industrial Properties (IIPR) said Thursday it resolved defaults on leases for 11 properties with PharmaCann.
Under the deal, Innovative Industrial said it used PharmaCann's security deposits to cover unpaid rent and certain penalties for December 2024 and January 2025. Lease terms were amended for nine properties, reducing the monthly base rent to $2.6 million from $2.8 million and increasing security deposit requirements to be paid over 36 months beginning in February 2027, Innovative added.
PharmaCann will work to transfer two cultivation sites in Michigan and Massachusetts to new tenants by August, Innovative said.
Innovative said PharmaCann also issued a secured promissory note to the company, maturing in 2035. If PharmaCann fails to refinance its senior credit facility by June 30, the lease amendments will be void, prior lease terms will be reinstated, and PharmaCann's promissory note will be cancelled, Innovative added.
Innovative said that as of January 28, it leases nine properties to PharmaCann across five states, covering 434,000 square feet and representing about $223 million in invested and committed capital.
Shares of Innovative were up 2.8% in recent trading.
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