Sky Harbour Group raises $15m in PIPE financing
Sky Harbour Group Corporation, a company that builds hangars for business jets, has raised additional $15m with an investment vehicle managed by Altai Capital.
So far, together with the first closing of private equity placement on November 2nd, 2023, the company has raised a total of $57.8m from investors selling 8,893,846 shares of stock and warrants to investors.
“We are gratified at the growing recognition of Sky Harbour’s unique model among sophisticated aircraft operators, and eager to get to work with our new partners as we steepen Sky Harbour’s climb,” said Tal Keinan, CEO, Sky Harbour.
The additional investment by Altai Capital Falcon includes participations from accredited investors that included a fund managed by Altai Capital itself, Bess Ventures & Advisory, the family office of Lane Bess, Raga Partners and the founding partners of investment firm 8VC.
“We expect that the completion of this equity financing will give Sky Harbour access to over $200m of additional debt capital, enabling the company to fully build out twelve total airfields totalling over 2.4m square feet of rentable hangar space,” said Rishi Bajaj, founder Altai Capital.
Sky Harbour specializes in building and operating private aircraft hangars, offering dedicated spaces for ultra-wealthy private jet owners. The company focuses on a niche market with high demand and limited supply, leading to high occupancy rates and rental revenues.
Sky Harbour Group recently announced third-quarter financial results wherein it posted rental revenue of $2.5m, up 481% year-on-year (YoY) from $0.4m in same period last year due to higher tenant leases at Miami-Opa Locka Executive Airport (OPF) hangar and impact of additional tenant leases at Sugar Land Regional Airport, Nashville International Airport (BNA) and OPF hangars.
The company’s operating expenses of $1.7m during the quarter ate up nearly 67% of the total revenue.
However, despite the sharp increase in revenues, the company posted a loss of $2m.