If you are a Boston Omaha or SkyHarbour Group fan, you probably noticed SkyHarbour stock has been up ~49% over the last month and ~19% in the last week alone. Now this is not a speculators newsletter so let’s get into tangible ideas.
For those not familiar SkyHarbour is a private aircraft storage leasing company. They went public through the Yellowstone Acquisition Company (SPAC) operated by Boston Omaha a conglomerate that operates in billboard, broadband, and real estate (among other) industries. SkyHarbour has used bonds, SPAC, and private fundraising to power its growth and expansion. Now there are two main reasons why the stock has recently been performing.
The first is that the company has been undervalued for a while. Even as new announcements come out about development beginning on major campuses like Chicago and plans for international expansion the stock stayed mainly flat at a discounted rate. SkyHarbour has been hitting the development targets it has set for itself and continue to perform.
Second, SkyHarbour announced the second closing of fundraising from private equity group Altai Capital which bought ~2.3m shares of Class A Common Stock and 400k warrants. This came in at a cost of $15m or at $6.50 on a per share basis. This combined with an earlier funding round with Altai that closed November 2, 2023 makes for a total investment of $57.81m.
“We expect that the completion of this equity financing will give Sky Harbour access to over $200 million of additional debt capital, enabling the Company to fully build out twelve total airfields totaling over 2.4 million square feet of rentable hangar space. Altai Capital and our partners look forward to supporting Sky Harbour as it completes a nationwide network of home-basing solutions for the domestic private aviation industry.”
Rishi Bajaj, Founder of Altai Capital
Watchlist Update:
Portfolio Update:
Until Sunday,
Soren
Have you looked at the bonus plan for the co ceos for Boston Omaha? They get 20% of book value increase over 6%.