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Cannabis REIT Innovative Industrial Properties Joins Small-Cap Index

Andrew Ward

The cannabis industry reached another investment milestone when Standards & Poors announced Thursday that it will add the cannabis REIT Innovative Industrial Properties (NYSE: IIPR) to its 600 SmallCap Index next week.

IIP is an industry leader in providing real estate capital for the medical cannabis sector. Its addition to the SmallCap Index comes as previous member Amedisys Inc (NASDAQ: AMED) moves up to the MidCap 400 Index.

Alan Brochstein, founder of 420 Investor, broke the news and told Benzinga that this isn’t the start of a new trend. 

More companies could be added in the future as the NASDAQ or NYSE allow more ancillary companies to enter, he said.

“A big barrier to more companies being included is the requirement of profitability, which IIPR met.”

To be added to the 600 SmallCap Index, IIP had to meet certain criteria to be considered for inclusion.

A small company must have an unadjusted market cap between $450 million and $2.1 billion. Additionally, a company must demonstrate it has reasonable liquidity, and over 50 percent of its shares must be available for trading. To have reasonable liquidity, its most recent quarter and the previous year must show positive earnings.

Since its 2016 IPO, IIPR has tripled, with a 33.3-percent increase in 2019 so far. The stock was up 7.45 percent at $65.01 at the time of publication Friday. 

Related Links: 

8 Stocks That Could Benefit From Marijuana Legalization In New York 

A Complete List Of NYSE- And NASDAQ-Listed Cannabis Companies 

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