Pictured: A file photo of marijuana plants in an indoor Colorado cultivation facility. (Photo by John Leyba/The Denver Post)

Cannabis real estate company hits Wall Street with a whimper in downsized IPO

Innovative Industrial Properties raises $67 million

The first cannabis company on a major U.S. stock exchange failed to make a big splash in its Wall Street debut.

Innovative Industrial Properties (NYSE: IIPR) announced it sold 3.35 million shares at $20 per share, raising $67 million in its initial public offering, which had been delayed and downsized.

Shares opened at $20.25 but closed at $19.15 on Thursday for IIP, a San Diego, Calif.-based real estate investment trust for medical cannabis facilities.

The company originally intended to sell 8.75 million shares at $20 per share. However, while some of the 2016 election results brought some good news for the company — medical and recreational marijuana measures passed in eight states — the ripple effects from the election of Donald Trump as president dampened the positive news, IPO analyst Matt Kennedy previously told The Cannabist.

Kennedy noted the recent nomination of Sen. Jeff Sessions, R-Ala. for the post of attorney general. Sessions has been outspoken against legalization efforts.

Ahead of the debut, IIP filed amended documents with the U.S. Securities and Exchange Commission stating its founders would forego receiving some stock as part of the IPO, and downsized its offering twice in three business days.