Cottonwood Communities Reports Private Preferred Offering Sales
August 27, 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 August 11, 2020, through August 26, 2020, the Company issued and sold 151,978 shares of its Series 2019 Preferred Stock in the Private Offering and received aggregate proceeds of $1,513,400. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $99,438 and placement fees of $29,255. As of August 26, 2020, there were 1,813,536 shares of the Company’s Series 2019 Preferred Stock outstanding.
Source: SEC
