CubCrafters Launches A ‘Grassroots’ Capital Funding Effort

Whether a bell will sound at NYSE remains uncertain.

Arturo Weiss

Tuesday, September 06, 2022 at 12:22 PM ET

Verified

The CubCrafters Carbon Cub series has proven popular among a wide range of GA pilots. [Photo: Stephen Yeates]

Key Takeaways:

CubCrafters is seeking to raise $50 million through a Regulation A+ Tier 2 offering, a process designed for smaller companies to raise capital with limited disclosure requirements, rather than a traditional Initial Public Offering (IPO) or SPAC.
The company has filed its Form 1-A "offering statement" with the SEC and is currently "testing the waters" by taking non-binding "Reservations of Investment" from potential investors.
Actual share sales cannot proceed until the SEC "qualifies" their offering statement, after which CubCrafters can begin selling securities under the Regulation A+ stipulations.
The capital raised will be used to fund manufacturing, research and development, infrastructure, and market expansion, capitalizing on their "grassroots American" approach and growth in the general aviation market.

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Aviation is known for many acronyms: FAA, ILS, and VFR, to name a few. Regarding business, others are just as commonplace, such as IPO, SEC, and SPAC. However, these terms can be misunderstood, and CubCrafters’ recent solicitation for investors offers an excellent opportunity to tackle this “transactional” topic.

Taking advantage of the high-profile venue at EAA AirVenture 2022 at Oshkosh, the company announced its intention to sell shares to anyone interested in helping the manufacturer reach new heights of innovation. IPO, the three magic letters for “Initial Public Offering” often heard throughout Wall Street, also began to circulate at Oshkosh. Is CubCrafters headed into IPO-land?