09:26 AM EDT, 09/17/2024 (MT Newswires) -- Sky Harbour Group ( SKYH ) said Tuesday that it plans to raise $31.8 million through a private investment in public equity, or PIPE, deal with investors by issuing 3.4 million shares at $9.50 each.

The aviation infrastructure development company said the offering's initial closing date is expected between Oct. 15 and Oct. 25.

The agreement includes an option for investors to purchase an additional share for each initial PIPE share at the same price, with the second closing date set for December, Sky said.

The funds, combined with earlier debt financing, will be used to support the company's expansion plans through 2026, which includes the development of new airport campuses, the company said.

The total potential proceeds of $240 million will help finance the construction of 800,000 square feet of additional rentable space across 6 to 7 new airports, Sky said.

Shares of the company were down more than 13% in recent Tuesday premarket activity.

Price: 11.55, Change: -1.70, Percent Change: -12.83