By Dayna Fedy-MacDonald | July 26, 2022 Estimated reading time 3 minutes, 43 seconds.
During this year’s EAA AirVenture Oshkosh, CubCrafters – which designs and manufactures light-sport, experimental, and backcountry aircraft – announced that it is initiating a public offering, which will allow outside investors to invest in the company for the first time in its 42-year history.
CubCrafters is being advised by Manhattan Street Capital, and intends to file with the securities and exchange commission (SEC) for qualification to launch its public offering “in the coming weeks.”
President and CEO Patrick Horgan said the Regulation A public offering will allow CubCrafters to accelerate manufacturing, innovation, and growth. Currently, the company has an order backlog of nearly 27 months; “with the significant increase in backcountry flying, demand for our aircraft continues to grow . . . and there is no end in sight,” noted Horgan.
The capital to be raised from investments is expected to allow CubCrafters to expand the infrastructure at its Yakima, Washington, facility, and significantly reduce lead times as a result.
The process to initiate a public offering began over two years ago, and was supported by company founder, Jim Richmond, who wanted to accelerate CubCrafters’ growth. Sadly, Richmond passed away unexpectedly in November 2021, but he left behind clear instructions to “stay on course” with established company business plans.
The manufacturer has organically funded its growth thus far, and does everything in-house in Yakima – including building the airframes, and testing and certifying aircraft. “We don’t outsource anything,” said Horgan.
“We’re an American-owned company,” he added. “And while there have been many opportunities for others that have tried to approach us with goals to bring us down the pathway with some other manufacturers, we want to stay an American-owned company.”
CubCrafters’ current type offerings include the Carbon Cub SS (production light sport aircraft); Carbon Cub FX (a builder assist E-AB aircraft); Carbon Cub EX (aircraft kit); XCub (FAA Part 23 or builder assist E-AB aircraft; and the NXCub (nosewheel configuration of the XCub).
Horgan said almost everyone can invest in the company if they wish, including customers, the aviation community, backcountry enthusiasts, the investment community overall, and the public at large. The minimum investment is $400, and the offering price is $5 per share with minimal eligibility requirements.
CubCrafters is currently in a “Reservation Phase,” which allows anyone potentially interested in becoming a shareholder to reserve the opportunity to purchase stock at the Issue Price, “if and when the CubCrafters Regulation A public offering is approved by the SEC,” the company said.
