The “policy implications” of the state’s retirement fund’s investment into a company operating in the marijuana sector has Treasurer David Lillard ordering the shares be sold, according to a report by Andy Sher of the Chattanooga Times Free Press.

That’s despite a 26% gain in share price of San Diego-based Innovative Industrial Properties Inc. since the Tennessee Consolidated Retirement System’s small-stock fund bought 7,009 shares in April or May.

The company is a real estate Investment trust that bills itself as the “leading provider of real estate capital for the medical-use cannabis industry.”

The Chicago Sun-Times reported that Tennessee was among more than dozen states that stood to benefit from Illinois’ new recreational marijuana. Illinois is one of 11 states where Innovative Industrial Properties does business.

Michael Brakebill, the pension fund’s chief investment officer, told the Times Free Press that the investment into the company was part of a small-company stock index the state created.

Lillard said it’s difficult to evaluate every stock that’s part of an index, but that “we’ve got to figure out a way to do that and deal with it because it highlights the fact that you know what you’ve got in portfolio.”

The investment in Innovative Industrial Properties is worth about $720,000 out of the state’s $52 billion retirement system.

“The bottom line is I have ordered Michael and his staff to sell this investment, and we won’t have it after today or tomorrow, whenever the transaction goes down,” Lillard told the paper.

Tennessee lawmakers have balked in recent years to join states legalizing medical or recreational cannabis.