- Washington-based CubCrafters designs and manufactures Experimental, LSA (Light Sport Aircraft), and Part 23 Certified aircraft
- The company, which boasts a history of innovation, is an industry leader in backcountry aviation
- Its leadership in the market has led to high demand for its airplanes, creating an order backlog and greater need for customer service
- CubCrafters is looking to raise capital to improve its production and customer service through a Regulation A+ exemption from the SEC
- The company aims to raise $50 million and has received excellent investor interest; in just under three weeks, it had received reservations that amounted to 25% of the target
Operating out of a Federal Aviation Administration (“FAA”)-certified design and manufacturing facility situated on the edge of McAllister Field Airport in Yakima, Washington, CubCrafters continues to change the landscape of backcountry aviation, something it has progressively done for more than 40 years. Founded in 1980 by Jim Richmond, the company has been modeled around a culture of innovation, which, coupled with the dedication and output of its now more than 200 highly skilled personnel, has propelled the company to be a leader in its market segment.
This status is evidenced by several parameters, including CubCrafters’ average aircraft revenue per customer, which has grown from just over $5 million in 2001 to over $30 million in 2021, according to the company’s Regulation A+ presentation (https://ibn.fm/tfXiU). In fact, the company reported resilient sales as well as a growing market share in 2021 despite pandemic-related supply chain issues.
As a further testament to this leadership, two CubCrafters aircraft are the recipients of only a handful of Part 23 Certificates that the FAA has issued over the last two decades. Moreover, CubCrafters has been among the very few companies to obtain a new type certificate – an approval that signifies compliance with requirements on airworthiness, design of the aircraft and all component parts, noise, exhaust emission standards, and more (https://ibn.fm/ftfrK) – in backcountry aviation since 1970.
CubCrafter’s distinctiveness has led to demand for its aircraft, leading to the company being fully booked until 2024. In an interview with Stuart Smith on an episode of the Bell2Bell Podcast, CubCrafters Vice President of Sales and Marketing Brad Damm, however, emphasized the need for the company to reduce the “time it takes from when a customer places a deposit with us to when they get a new airplane. Optimally, that should be a year or less, [yet] right now, we are in excess of two years. So, continuing to improve our systems to be able to build airplanes faster to meet demand is our number one goal” (https://ibn.fm/maPrE).
In addition to reducing the waiting time, CubCrafters aims to improve its customer service. “The company has grown so fast. We have put a tone of airplanes out in the field [but] our customer service and customer support have not grown as first as the rest of the company has. So, we are making investments there too – making parts and service more available, and getting more trained technicians out in the field,” Damm commented.
One way the company aims to achieve these goals is by raising capital to expand its capacity through a Regulation A+ (“Reg A+”) exemption with the Securities and Exchange Commission (“SEC”). CubCrafters is accepting investments through Manhattan Street Capital. (The investors who had reserved the stock in advance of the qualification have the first opportunity to purchase shares at the issue price, effectively converting their reservations to shares of common stock.)
So far, and following the late July announcement of the intention to follow the Reg A+ route (https://ibn.fm/v21FA), CubCrafters has received excellent reserve response. According to Brad Damm, the reservations had exceeded 25% of the $50 million target in just over two weeks post-announcement; this figure represents over $12.5 million. Since then, the reservations have grown to more than $25 million, according to the company, and are on course to reach the target.
Interested investors can get more information and make their investment using this link: https://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 CubCrafters Inc. are available in the company’s newsroom at https://ibn.fm/CUB
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