Private Offerings at Cottonwood Communities Raise Over $3 Million

Cottonwood Communities accelerates its growth with strategic private placements, attracting accredited investors.

December 24, 2024

Strategic Financial Moves

Cottonwood Communities, Inc., based in Salt Lake City, Utah, has showcased its strategic foresight through recent private placement offerings. These initiatives, detailed in the company’s regulatory filing, underscore its commitment to attracting significant investment while adhering to stringent regulatory compliance.

The first offering, known as the Series 2023 Private Offering, aims to raise up to $150 million. By December 22, 2024, the company had issued over 114,000 shares of Series 2023 Preferred Stock, generating $1.1 million in gross proceeds. The shares, each priced at $10, are exclusively marketed to accredited investors, leveraging exemptions under Rule 506(b) of Regulation D. Discounts provided to select investors further highlight the company’s adaptability and investor-focused strategies.

Expanding Opportunities with Convertible Stock

In parallel, Cottonwood Communities launched the Series A Convertible Private Offering, also targeting a $150 million ceiling. During the same reporting period, the company sold nearly 245,000 shares, bringing in $2.3 million in gross proceeds. Similar to the Series 2023 offering, these shares were priced at $10 each and tailored for experienced investors seeking value-aligned opportunities.

Building Momentum Amid Costs

The company’s combined total of over $3 million in proceeds reflects its robust approach to financial planning and investor relations. However, these gains came with associated selling commissions and placement fees totaling nearly $190,000 for the two offerings. Despite these costs, the net funds significantly enhance Cottonwood’s operational scope and financial health.

Looking forward, Cottonwood intends to leverage these funds to expand its real estate assets and deliver strong returns to its investors. By maintaining transparent practices and adhering to regulatory standards, the company reinforces its position as a reliable player in the real estate investment trust (REIT) space.

As Cottonwood Communities continues its trajectory of growth, these private placements mark a pivotal step in fortifying its long-term vision and commitment to shareholder value.