- CubCrafters, producer of best-in-class Backcountry Aircraft, recently reported it would welcome public investment for the first time in its 42-year history
- 48 hours after making the announcement, the company indicated that the reservations for its offering (via a Regulation A exemption) had crossed the $5 million mark, representing over 10% of the $50 million goal
- According to the company, the money raised through this public offering is set to go toward increasing production speed, improving service and support for owners of its aircraft, and accelerating innovation
- CubCrafters is eagerly anticipating qualification of the offering by the SEC, which will allow the conversion of the reservations into actual investments
Becoming a publicly-traded company was a long-standing vision of the company Founder, Jim Richmond. Because of this, Cub Crafters (typically styled CubCrafters), a Yakima, Washington-based OEM designer and producer of backcountry aircraft has now commenced plans to materialize his vision, and is currently allowing potential investors to reserve shares in an upcoming public offering.
The news that outside investment would be allowed for the first time in the 42 year history of the company excited potential investors, who reserved more than 1,000,000 shares of stock, worth more than $5 million (https://ibn.fm/QZ97i), in just the first 48 hours after the reservation period opened.
Given the company’s goal is to raise $50 million for an expansion of its operations, the company has opted to file for a Regulation A exemption from the 1933 Securities and Exchange Act (https://ibn.fm/B2JGF). If approved by the Securities and Exchange Commission (“SEC”), this exemption will allow customers of the company, its fans, aviation enthusiasts, and even the general public to purchase shares of preferred stock in the company at the offering price of just $5 per share.
“Regulation A is uniquely suited to CubCrafters because the company appeals to a large audience of pilots and aviation enthusiasts; it has a large and loyal customer base,” explained Rod Turner, CEO of Manhattan Street Capital, an online fundraising platform advising CubCrafters on the Reg A offering, in an earlier news release (https://ibn.fm/5UvyU). “Providing fans and customers with easy access to become owners of the company makes great use of the online investing process that can be used in this type of public offering.”
According to Rod, the reservations, which account for more than 10% of the company’s goal, demonstrate investors’ remarkable enthusiasm and embody the reputation CubCrafters has earned over its 42 years in business.
Founded in 1980 in the rural Washington State community of Yakima as a company that repaired and restored the historic Piper Cub light aircraft, CubCrafters has grown into a Federal Aviation Administration (“FAA”) certificated OEM of Part 23 Certified, Experimental, and Light Sport (“LSA”) Backcountry Aircraft, currently offering over seven unique models. The company introduced its first ‘new’ aircraft, the Piper/CubCrafters PA18, in 1999, built under the Federal Aviation Administration (“FAA”)’s Spare & Surplus Rule. Later, in 2004, the company introduced the Piper-Super-Cub-inspired Top Cub, which featured a modernized design that met the Part 23 certification (https://ibn.fm/IdisS).
In 2006, CubCrafters introduced its first LSA, the Sport Cub, and in 2009, it updated this aircraft’s engine to make it lightweight but capable of outputting 180 horsepower. The company renamed the Sport Cub to Carbon Cub SS in 2010 and now offers a kit version of the Carbon Cub SS under the trade name Carbon Cub EX.
CubCrafters’ focus on innovation and independence became more apparent in 2016 when it introduced the XCub following close to six years of development. Built organically using the company’s resources and not involving any loans, venture capital, or customer deposits, the XCub has a wholly original fuselage design and meets the latest FAA Part 23 certification standards.
Since its inception, CubCrafters has manufactured a fleet of about 1,500 new aircraft and restored or rebuilt scores of others. Furthering its storied reputation, the company indicates that the current order backlog exceeds two years, with efforts ongoing to increase production. So, with an eye on, among other targets, reducing this waiting period, CubCrafters is welcoming new public investment.
“Reservations for over 10% of our $50 million goal in only two days is just amazing. This level of interest from the aviation community and the general public tells us that they see real value in our company and want to help it grow,” commented CubCrafters VP of Sales Brad Damm. “Backcountry aviation is increasing in popularity, and the demand for our aircraft continues to grow. We want to build airplanes faster to reduce the amount of time a customer has to wait to get a new airplane, we want to improve service and support for our owners, and we want to accelerate our focus on new innovation. Our goal is to exceed our customers’ expectations.”
CubCrafters is offering its preferred stock for a price of $5 per share, with a minimum investment of only $400. The reservations are non-binding and can be made through the link: www.ManhattanStreetCapital.com/CubCrafters.
For more information, visit the company’s website at www.CubCrafters.com.
NOTE TO INVESTORS: The latest news and updates relating to Cub Crafters Inc. are available in the company’s newsroom at https://ibn.fm/CUB