Cottonwood Raises $2.2M Through Series A Preferred Stock Sale
The capital raise is part of a broader $150 million private offering aimed exclusively at accredited investors.
January 05, 2026
Cottonwood Communities Expands Equity Base with Fresh Series A Capital Injection
Cottonwood Communities has added $2.2 million to its balance sheet through the sale of Series A Convertible Preferred Stock. The shares—227,819 in total—were sold to accredited investors between December 17, 2025, and January 1, 2026.
This capital raise is one step in a broader $150 million private offering that Cottonwood launched in September 2023. The shares are priced at $10 each and are offered under Rule 506(b) of Regulation D, which limits participation to accredited investors and prohibits general solicitation.
Of the gross proceeds, Cottonwood allocated $86,860 toward selling commissions and $59,218 toward placement fees. The net result is new equity capital that can support the company’s broader investment strategy.
As of the beginning of 2026, total outstanding Series A Convertible Preferred Stock stood at 11,982,475 shares. This reflects a gradual build since the offering’s launch—driven by ongoing demand from private capital sources.
These shares aren’t listed on a public exchange, which means they’re generally illiquid. But within the private market, they offer a pathway for the company to raise funds efficiently while offering investors a convertible equity structure.
While Cottonwood hasn’t outlined specific use-of-proceeds in this filing, transactions of this kind often support:
- Real estate development
- Portfolio growth initiatives
- General capital needs
The terms of the Series A shares—convertibility, yield, and structure—are designed to match the expectations of institutional or high-net-worth investors who prioritize flexibility and targeted exposure.
The offering remains open, and the pace of capital deployment will likely align with the company’s near-term investment goals.
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