Cottonwood Reports $3.2M Preferred Stock Sales in Dual Private Offerings

Cottonwood Communities, Inc. has successfully raised approximately $3.2 million through the ongoing private placement of two distinct series of preferred stock offerings. The transactions, conducted under Rule 506(b) of Regulation D, targeted accredited investors without the use of general solicitation.

The first offering, titled Series 2023 Preferred Stock, saw the company issue over 137,000 shares at $10 per share between December 6 and December 15, 2024. This tranche brought in a total of $1.36 million in proceeds. After deducting costs, Cottonwood paid approximately $69,290 in commissions and $39,780 in placement fees related to the sales. As of mid-December, outstanding shares for the Series 2023 Preferred Stock totaled 10.5 million shares.

In parallel, Cottonwood executed its Series A Convertible Preferred Stock offering, launched earlier in September 2023. During the same period, the company sold over 192,000 shares at the same $10 price per share, accumulating approximately $1.86 million in proceeds. Associated fees included $55,500 in commissions and $53,175 in placement costs. The Series A offering now accounts for 5.3 million shares outstanding.

The dual offerings reflect the company’s strategic capital-raising initiatives tailored to private investors. With a combined issuance limit of $300 million across the two preferred series, Cottonwood appears focused on bolstering its financial position to support its broader real estate investments and operational strategies.

Both placements fall within Cottonwood’s growth-oriented model, emphasizing preferred stock structures that allow investors access to targeted real estate opportunities. Moving forward, these capital inflows are expected to align with the company’s ongoing initiatives in the real estate investment trust (REIT) space.