Cottonwood Communities Reports Preferred Offering Status
April 13, 2021
On November 8, 2019, Cottonwood Communities, Inc. 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 initially offered a maximum of $50,000,000 in shares of its Series 2019 Preferred Stock to accredited investors at a purchase price of $10.00 per share (with discounts available to certain categories of purchasers). On March 23, 2021, the board of directors approved an increase in the size of the offering to $100,000,000. 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 March 26, 2021, through April 11, 2021, the Company issued and sold 336,982 shares of its Series 2019 Preferred Stock in the Private Offering and received aggregate proceeds of $3,368,000. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $233,960 and placement fees of $63,992. As of April 11, 2021, there were 4,581,370 shares of the Company’s Series 2019 Preferred Stock outstanding.
According to the Company’s 2020 10-K, proceeds from the issuance of preferred stock, net of issuance costs, were $28.55 million in 2020. During 2020, proceeds from the issuance of common stock were $33.36 million.
Source: SEC
