Innovative Industrial Properties (NYSE: IIPR) published a defense of its business after a blisteringly critical report on the company was published on Thursday. That 36-page report, written by an investment firm called Grizzly Research, rhetorically asks whether the marijuana real estate investment trust (REIT) is "the WeWork of Cannabis." It supports its answer ("[w]e think it's worse!") by making a host of accusations, including: that, based on in-person visits to Innovative's properties, it operates "a highly toxic portfolio of low-quality assets." it does not conduct proper due diligence on its business partners, or is defrauding investors. numerous lessees are currently insolvent, or at an elevated risk of becoming so. by Grizzly's estimates, roughly 38% to 49% of Innovative's rental income is "in direct jeopardy or already lost." and it "suspect[s] [Innovative] of arranging sham transactions to keep its biggest tenant solvent in the short term." Image source: Getty Images. "[Innovative] shares many similarities with WeWork which too recently fell off: A real estate company with a flawed business model led by a young charismatic leader," Grizzly wrote. "Both companies are heavily dependent on outside financing. [Innovative] Executive Chairman Alan Gold is now pursuing new ventures, similar to WeWork's [Adam] Neumann." The latter reference was to the controversial ex-CEO of the troubled co-working company. In its rebuttal, the REIT wrote that: "[t]he report is flawed and demonstrates a fundamental misunderstanding of [Innovative's] business model. As such, most of the report's content does not warrant a response from [Innovative]." The REIT added that it has "an absolute dedication to transparency to all of our partners, including our valued long-term investors." In its report, Grizzly disclosed that it has a short position in Innovative stock. Innovative's share price increased by 9.2% on Thursday, easily outpacing the gains of the broader stock market. Here's The Marijuana Stock You've Been Waiting ForA little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom. And make no mistake – it is coming. Cannabis legalization is sweeping over North America – 11 states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018. And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution. Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks. Simply click here to get the full story now. Learn moreEric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Innovative Industrial Properties. The Motley Fool has a disclosure policy.Source