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Cottonwood Communities Inc.
05/02/2024 | Press release | Distributed by Public on 05/02/2024 13:11
Private Placement - Form 8-K
Item 3.02 Unregistered Sales of Equity Securities.
Preferred Offering
On September 19, 2023, 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 $150,000,000 in shares of its Series A Convertible Preferred Stock to accredited investors (the "Private Offering") at a purchase price of $10.00 per share. 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 April 22, 2024 through May 1, 2024, the Company issued and sold 153,776 shares of its Series A Convertible Preferred Stock in the Private Offering and received aggregate proceeds of $1,534,635. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $90,060 and placement fees of $45,198. As of May 1, 2024, there were 2,284,642 shares of the Company's Series A Convertible Preferred Stock outstanding.