Cottonwood Communities Reports $3.12M in Preferred Stock Sales and Exchanges
The company raised capital through ongoing private placements and continued preferred stock exchanges.
July 09, 2025
Cottonwood Communities Boosts Capital via Preferred Stock Offerings
Between June 18 and July 7, Cottonwood Communities raised just over $3.1 million through a mix of preferred stock sales and exchanges. The company is actively running two private placements—each with a $150 million cap —offering shares to accredited investors under Regulation D exemptions.
The first, a Series A Convertible Preferred offering launched in September 2023, added 161,686 shares during the week of June 30 to July 7. That brought in $1.6 million in gross proceeds. To complete the transaction, Cottonwood paid out:
- $85,560 in selling commissions
- $46,718 in placement fees
As of July 7, 9.25 million Series A Convertible shares were outstanding.
Activity Under the Series 2025 Preferred Offering
The second offering, tied to the Series 2025 Preferred Stock, has been live since December 2024. From June 18 through July 7, Cottonwood sold 151,900 shares for cash, bringing in $1.519 million. Costs for this portion included:
- $91,140 in selling commissions
- $45,186 in placement fees
The company also issued 458,110 Series 2025 shares in exchange for outstanding shares of Series 2019 and Series 2023 Preferred Stock. These exchanges triggered:
- $217,806 in additional selling commissions
- $110,258 in placement fees
Following these sales and exchanges, Cottonwood reported 8.34 million Series 2025 shares outstanding as of July 7.
Terms and Structure
Both offerings are being marketed on a best-efforts basis and are limited to accredited investors. Shares are priced at $10 per share, with discounts available based on buyer type. The Series 2025 exchange ratios are structured as follows:
- Up to 1.0782-to-1 for Series 2019 stock
- 1-to-1 for Series 2023 stock
Strategic Use of Proceeds
Cottonwood continues to use these placements to manage capital needs and support liquidity for existing shareholders. The offering structure is designed to provide flexibility—whether investors are adding fresh capital or converting older holdings into updated shares.
Share
Read More Articles
