In what is a first for the cannabis industry, Standard & Poors will be adding cannabis REIT Innovative Industrial Properties (NYSE:IIPR) to the 600 SmallCap Index next week. IIPR will replace existing index member Amedisys, which is being moved up to the S&P MidCap 400 Index:

The index, which was introduced in 1994, is designed to track small companies that meet specific criteria for inclusion and, along with the S&P 500 and the S&P MidCap 400, form the S&P Composite 1500. The current rules require the unadjusted market cap to be between $450 million and $2.1 billion, reasonable liquidity, more than 50% of the shares outstanding available for trading and financial viability, which is defined as positive earnings in the most recent quarter as well as over the past year.

IIPR has tripled since its late 2016 IPO and has increased 33.3% in 2019. The stock rallied in after-hours trading by 4% at the time of publication following news of its index addition.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Published by Alan Brochstein, CFA Facebook | LinkedIn | Email Based in Houston, Alan leverages his experience as founder of online communities 420 Investor , the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures , he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha , where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter