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  "documentTitle": "Innovative Industrial Properties, Inc. (IIPR)",
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  "authorName": "Grizzly Reports",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-09 00:00:00",
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      "kind": "callout",
      "text": "Vireo will need to raise a significant amount of money to operate these licenses properly.",
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      "text": "Vireo Historical Prices",
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      "text": "stock price: 90%",
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      "text": "Vireo will need to raise a significant amount of money to operate these licenses properly. In fact, their intangible assets went from a very small $2,184,565 in December 31, 2018 to $38,149,913 as of September 30, 2019 while their operating expenses have just doubled, thus we believe that they are not yet operating most of their newly acquired licenses. Also, as of September 30, 2019, their net loss is $19,884,720, ten times more than the same period a year before with a loss of $1,894,732. Vireo is currently at a run rate of burning about $11.3M in cash per quarter from operations; With $16.4M cash in the bank as of Q3 2019 the company had only 4.3 months of cash left before it will run out of money.",
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      "text": "During the past 9 months Vireo has aggressively pursued acquisitions to overcome the struggles in its existing businesses but we attribute little value to the new acquisitions. Those acquisitions don't represent much in terms of tangible assets and basis for future borrowing, according to their last quarterly filings; Only $4 million in tangible assets was acquired for a total investment of around $46.7 million. Vireo mostly acquired licenses (intangible assets), totaling a fair value of approximately $38.2 million.",
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      "kind": "paragraph",
      "text": "Similar to PharmaCann, the company has four properties tied up with IIPR at yields between 13.5%-16.5% which are very burdensome to cash flow in foreseeable future especially with operations progressing at much slower pace than initially anticipated.",
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      "kind": "paragraph",
      "text": "The company has a history of legal issues relating to smuggling charges against two former executives where company officials were charged with illegally transporting $500,000 worth of cannabis oil from the company's Minnesota facility to its New York operation in December 2015.",
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      "kind": "paragraph",
      "text": "Along with its underperformance Vireo saw its stock price plummet by over 90% since its reverse-takeover last year.",
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      "text": "Vireo just raised $10.5 million with the help of one of their directors (by indirectly subscribing for 1,736,715 Units in the Offering, representing an estimate of $1.34 million) by issuing stock before their stock price collapsed. However we strongly believe this is far from enough and with the strongly suppressed stock price access to financing will be increasingly challenging.",
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      "evidence": "The report highlights contradictions in IIPR's business dealings, such as suspicious transactions and financial troubles of its tenants.",
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      "evidence": "The report zooms in on specific tenants, such as PharmaCann and Vireo, to highlight their financial troubles.",
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