Cottonwood Communities Continues to Raise Capital Via Preferred Offering
March 2, 2020
On November 8, 2019, Cottonwood Communities, Inc. (the “Company”) launched a best-efforts private placement offering exempt from registration pursuant to Rule 506(b) of Regulation D of the Securities Act pursuant to which it is offering a maximum of $50,000,000 in shares of its Series 2019 Preferred Stock to accredited investors (the “Private Offering”) at a purchase price of $10.00 per share (with discounts available to certain categories of purchasers). The exemption is available to the Company because the shares are being offered and sold solely to accredited investors without the use of general solicitation.
During the period from February 24, 2020, to March 1, 2020, the Company issued and sold 64,000 shares of its Series 2019 Preferred Stock in the Private Offering and received aggregate proceeds of $640,000. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $44,800 and placement fees of $12,160. As of March 1, 2020, there were 544,699 shares of the Company’s Series 2019 Preferred Stock outstanding.
The Preferred Stock has an annualized distribution rate of 5.5% based upon the $10.00 purchase price and assuming the distribution is paid every day for a year at the daily distribution rate of $0.00150273 per share. Distributions are paid monthly.
Source: SEC
