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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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  "notes": "Includes a Gantt chart for construction phases and investigative text questioning the financial relationship between IIPR and PharmaCann.",
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      "kind": "callout",
      "text": "Why is PharmaCann willing to pay $3M in annual rent for an empty piece of land?",
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      "text": "Gantt chart showing construction phases from March 2019 to December 2019",
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      "text": "On 10/30/2019 IIPR closed on the purchase of a property with approximately 48,000 sq. ft. of industrial space from PharmaCann. The purchase price was $18M, with up to $7M reimbursement for improvement. This was right after MedMen officially canceled the deal with PharmaCann, putting PharmaCann’s financial future at increased jeopardy. The deal terms are outrageous. We have identified the property to be located on 1200 E Mason Ave, Dwight, IL, 60420, parcel # 05-05-02-300-015",
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      "text": "However, according to a news report, construction was severely delayed and only began in December 2019 as they only received final construction approval in October. PharmaCann spokesman Jeremy Unruh indicated that the property would be up and running in the second quarter of 2020. However, our research indicates that the property is far from completion. Moreover, due to the coronavirus breakout, we can expect severe delays in the construction. Why is PharmaCann willing to pay $3M in annual rent for an empty piece of land? According to IIPR’s footnote disclosure in the latest 10k, about $2.4M in construction funding already went into this property, but of that portion IIPR only funded about $745,000. So IIPR is still on the hook for the residual $1.6. We didn’t see the $2.4M improvements when we visited the property in person. We question whether the money IIPR sent to PharmaCann was used to further development of this lease, or to make rent payments on existing leases with IIPR. The worsening financial situation of PharmaCann suggests IIPR has thrown good money after bad in this case for the sake of keeping its key tenant afloat in the short term.",
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      "text": "PharmaCann spokesman Jeremy Unruh indicated that the property would be up and running in the second quarter of 2020.",
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      "kind": "source-note",
      "text": "Source: Exhibit C on development agreement",
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      "kind": "title",
      "text": "2.1.3 Dwight IL – Real Estate Value Increase Over 10x in One Year without Any Major Changes",
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      "kind": "title",
      "text": "SCRANTON, PA CULTIVATION SITE",
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