The company also continued its exchange program, issuing thousands of new shares in return for earlier series.

August 26, 2025

Strong Momentum in Cottonwood’s Series 2025 Offering

Between August 12 and August 22, Cottonwood Communities, Inc. raised $880,000 through its ongoing Series 2025 Preferred Stock private placement. The shares were issued to accredited investors, priced at $10.00 each, with certain discounts applied depending on the investor type. This capital raise is part of a broader $150 million offering the company launched in December 2024.

Cottonwood is using a two-pronged strategy to grow its Series 2025 Preferred Stock base. In addition to new cash investments, the company is offering current holders of its Series 2019 and Series 2023 Preferred Stock the ability to exchange into the Series 2025 class. The exchange ratios are fixed: one-to-one for Series 2023, and between one-to-one and 1.0782-to-one for Series 2019. The exchange window runs through August 31, 2025, though it may be extended.

Capital Raised and Outstanding Share Totals

During the ten-day reporting period, Cottonwood issued 88,000 shares for cash and another 29,563 shares through exchanges. These transactions brought in more than $880,000 in gross proceeds and increased the total Series 2025 Preferred Stock outstanding to 8,840,404 shares.

The company paid the following transaction costs in connection with the offering:

• Cash sales:$52,800 in selling commissions and $26,174 in placement fees


• Exchanged shares:$1,500 in commissions and $5,632 in placement fees

This update reflects Cottonwood’s push to simplify its preferred stock structure while continuing to raise capital. By combining new cash sales with a structured exchange option, the company is aligning its funding model with investor demand—whether they’re allocating fresh capital or repositioning existing holdings.