- CubCrafters is a producer of best-in-class backcountry aircraft made under the light sport, experimental, and FAA-certified (Part 23 certified) aircraft categories
- In 2022, the company achieved several milestones, including filing and receiving qualification for a public offering under the Regulation A+ exemption, marking the first time the company has opened to outside investment in its 42-year history
- The company aims to raise $50 million, channeling the proceeds from the offering toward accelerating manufacturing, enhancing manufacturing capabilities, furthering innovation, and improving customer service
- CubCrafters also released a new, improved engine for its Experimental aircraft
- In addition, CubCrafters announced its flagship XCub aircraft had been selected by the United States Department of Agriculture (“USDA”) for a new government aircraft-fleet-modernization contract
Though not new, backcountry aviation has exploded in the past 25 years, according to an article in the Plane&Pilot Magazine, driven in part by pilots’ need to fly their own aircraft for the rewards of the experience and adventure (https://ibn.fm/Zguzn). This growth has pushed demand for backcountry aircraft capable of taking off and landing on varied rough terrain or water, let alone well-groomed and paved runways.
For a backcountry aircraft manufacturer whose history spans more than 40 years, CubCrafters has witnessed firsthand the explosion of the industry. And to quench aviation enthusiasts’ ever-growing desire for backcountry and light aircraft, the Yakima, Washington-based company has been growing to meet the task.
Guided by superior quality, industry-leading innovation, and independent thinking, CubCrafters has changed the face of backcountry aviation by producing and selling seven innovative models of light aircraft. Segmented into three categories – Light Sport Aircraft (“LSA”), Experimental Builder Assist (“E/AB”), and Part 23 certified aircraft – the models include the Carbon Cub SS, Carbon Cub FX-2, Carbon Cub FX-3, Carbon Cub EX-2, Carbon Cub EX-3, NXCub, and XCub.
As CEO Patrick Horgan emphasized in a recent interview with Bell2Bell’s Stuart Smith (https://ibn.fm/XP5yM), CubCrafters has been a “continually growing company since inception.” Continual as it may be, this growth can be analyzed through the lens of the progress made on an annual basis, leading up to 2022 when the company invited outside investment for the first time.
Founded in 1980 by Jim Richmond, CubCrafters has always funded its operations organically. “We are a 42-year-old company that has been [primarily] funded organically. We are a company of innovation, so we are always innovating new products, and we have always done that organically,” Horgan said in the interview. “But as the company has matured and our demands have grown – our demands [include] over two years of booked orders – [so too has] the need to accelerate our manufacturing and growth, enhance our manufacturing capabilities, continue our innovation, and move at a quicker pace.”
With this realization, the company recognized the unique opportunity that lay in offering shares to the public and raising capital for further development. In July, 2022, CubCrafters announced its intention to allow new public investment in the company under the Regulation A+ (“Reg A+”) exemption (https://ibn.fm/saqmj). Subsequent to this, the company filed with the Securities and Exchange Commission (“SEC”) for qualification to launch the public offering. In the meantime, and before receiving the qualification, CubCrafters, through its advisor Manhattan Street Capital, began allowing potential investors to reserve shares at $5 per share. The non-binding reservations would provie the potential investors the first opportunity to purchase shares.
In just 48 hours following that announcement, potential investors had reserved more than 1 million shares of stock (https://ibn.fm/WgwdS), with Brad Damm, CubCrafters VP of Sales, commenting: “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.” By the end of the second week post-announcement, the reservations had exceeded 25% of the target amount ($12.5 million). In just 90 days, the company had received reservations for over $25 million of its shares, further underscoring the overwhelming interest and investor demand the company’s capital raise has received so far.
In November, CubCrafters’ desire to expand its operations received an extra boost when the SEC qualified the Reg A+ exemption, allowing investors to being purchasing the shares they reserved, and also opening the door for those who haven’t previously placed a reservation (https://ibn.fm/sn39G).
“This was a great first step in securing the vision of our founder, Jim Richmond, who wanted to give the public an opportunity to participate in the growth of the company,” said Horgan of the qualification. “Now that we have been qualified by the SEC, we look forward to welcoming new investors to CubCrafters and working on their behalf to drive long-term shareholder value.”
In addition to the filing and receiving qualification for the Reg A+ public offering, CubCrafters also achieved several other milestones this year. In August, for instance, the company introduced a new lightweight engine for the E/A-B Carbon Cub series of aircraft. Called the CC363i F/P, the new engine is a fixed-pitch version of the larger displacement 186 horsepower (“HP”) fuel-injected constant-speed prop engine that CubCrafters first introduced in 2017. The new engine is only offered exclusively on the Carbon Cub EX-2, EX-3, FX-2, and FX-3 (https://ibn.fm/hVdEm).
More recently, CubCrafters announced December 6 that its flagship certified CC19 XCub aircraft had been selected by the United States Department of Agriculture (“USDA”) for a new government aircraft-fleet-modernization contract, extending a long working relationship that began in 2003 (https://ibn.fm/bviTl). Horgan observed that the long relationship is a “strong testament to our ability to design and manufacture exceptionally rugged utility aircraft for backcountry missions.”
For more information, visit the company’s website at www.CubCrafters.com.
NOTE TO INVESTORS: The latest news and updates relating to CubCrafters Inc. are available in the company’s newsroom at https://ibn.fm/CUB
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