Elroy Air has announced plans to become a publicly traded company through a merger with special purpose acquisition company (SPAC) Columbus Circle Capital Corp. II, in a deal with an expected post-transaction enterprise value of approximately $1 billion.
Announced on June 26, the deal, which is expected to close in the fourth quarter of 2026, is subject to approval by shareholders of both companies, regulatory clearances, and other customary closing conditions. Upon completion, the combined company is expected to trade on the Nasdaq stock exchange under the ticker symbol "ELRY."
The transaction values Elroy Air at approximately $800 million pre-money. More than $165 million in committed PIPE capital has been secured to fund the deal, anchored by Inflection Point alongside existing and new institutional investors. Additional proceeds of up to $230 million may be available depending on shareholder redemptions.
"As a public company with access to significant capital, Elroy Air will be ideally positioned to meet the rising demand for Chaparral," said CEO Andrew Clare. "Autonomous flight is the next great logistics revolution — and Elroy Air intends to lead it."
According to the autonomous cargo drone developer, the transaction is intended to provide access to public capital markets as the company advances certification, manufacturing, and commercial deployment of its aircraft. Elroy Air said it plans to scale production to meet demand from customers in commercial logistics, defense, humanitarian operations, and energy sectors.
The San Francisco-based company develops the Chaparral, an autonomous hybrid-electric vertical takeoff and landing drone designed for middle-mile cargo transport. The aircraft is designed to carry payloads exceeding 500 pounds over distances of up to 450 miles without requiring traditional airport infrastructure.
Elroy Air has partnered with Kratos Defense & Security Solutions as its exclusive U.S. manufacturer, with first production aircraft planned for late 2026.
The developer reported a demand pipeline currently consisting of non-binding letters of intent and memorandums of understanding exceeding 1,400 aircraft and over $5 billion in potential estimated revenue from customers including FedEx, Bristow Group, Barq Group, and SLI.
Elroy Air also cited more than six years of active defense programs with the U.S. Army, Marine Corps, and Air Force, as well as a selection by the U.S. Department of Transportation's eVTOL Integration Pilot Program under the Unleashing American Drone Dominance Executive Order. The company said the Chaparral passed all 22 evaluated items during testing with Japan's Ground Self-Defense Force for inter-island logistics.
On the international side, Elroy Air disclosed a $200 million joint venture initial agreement with Barq Group to establish a manufacturing facility in Abu Dhabi targeting the Middle East and North Africa region. Initial flight operations in the UAE are planned for 2027 using U.S.-built aircraft, with local production in Abu Dhabi expected to begin in 2028.
Barclays is serving as exclusive financial and capital markets advisor to Elroy Air and lead placement agent on the PIPE. DLA Piper LLP is acting as Elroy Air's legal counsel. The company is backed by investors including Lockheed Martin Ventures, Shield Capital, Marlinspike Partners, Snowpoint Ventures, DiamondStream Partners, and Catapult Ventures.
"Elroy Air is emerging at the intersection of two massive secular shifts: the modernization of defense technology and the automation of global supply chains," said Michael Blitzer, Chief Investment Officer of Inflection Point. "The company's multi-billion dollar demand pipeline and strategic partnerships underscore the urgency of the market opportunity and Elroy's growing strategic importance within the industry."
Following the close of the transaction, the combined company will operate under the Elroy Air name. CMII will be renamed Inflection Point Acquisition Corp VII prior to closing.
