By William Gullotti
Buffalo, N.Y., July 28 – Cottonwood Communities, Inc. entered a Regulation D broker-dealer arrangement on July 25 to issue 1 million series 2023-A preferred stock to an unaffiliated third party on a best-efforts basis, according to an 8-K filed with the Securities and Exchange Commission.
The new series is priced at $10 per preferred, resulting in gross proceeds of $10 million.
The preferreds will pay monthly dividends at a 7% annual rate and must be redeemed on or prior to Dec. 31, 2027.
The series 2023-A preferred stock, with respect to dividend rights and rights upon voluntary or involuntary liquidation, dissolution or winding up of the company, ranks senior to the common stock, junior to the series 2019 preferred stock and the series 2023 preferred stock.
Cottonwood may redeem the series 2023-A preferreds, in whole or in part, at par plus accrued and unpaid dividends, starting June 30, 2024. The commencement of the company’s early redemption rights may also be triggered if the company’s common stock is admitted for trading on a national securities exchange, subject to certain conditions, or upon entry into a binding commitment for merger or acquisition.
Cottonwood Communities is a real estate investment trust based in Salt Lake City.
| Issuer: | Cottonwood Communities, Inc.
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| Issue: | Series 2023-A preferred stock
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| Amount: | $10 million
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| Maturity: | Dec. 31, 2027
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| Dividend: | 7%, payable monthly
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| Price: | Par of $10
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| Call: | At par starting June 30, 2024, or upon listing of common stock for trading on a national securities exchange, subject to conditions, or upon agreement for acquisition or merger
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| Pricing date: | July 25
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| Distribution: | Private placement, Regulation D
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