Elroy Air to Merge with CMII, Valued at $800 Million
Elroy Air, U.S.-based technology developer of autonomous heavy-cargo drones for defense, rapid response and commercial logistics, and Columbus Circle Capital Corp II (CMII), a special purpose acquisition company led by the management team of Inflection Point Asset Management and Cohen & Company (COHN), which will be renamed Inflection Point Acquisition Corp VII (IPXG), announced that they have entered into a definitive business combination agreement whereby Elroy Air will become a publicly traded company. The proposed transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions, including regulatory and shareholder approval. The transaction values Elroy Air at $800M pre-money, and has more than $165M in committed PIPE capital, which is expected to fully fund commercial scale production of the Chaparral with U.S. manufacturing partner Kratos Defense & Security Solutions (KTOS). $65M of the more than $165M PIPE is funding in connection with the execution of the BCA. Post-transaction, Elroy Air is expected to have an enterprise value of approximately $1B. The Boards of Directors of both Elroy Air and CMII have unanimously approved the proposed transaction. The deal is expected to close in late 2026, subject to customary closing conditions, including approval by CMII's shareholders and regulatory review. Upon closing, the combined company will use the Elroy Air name and expects to be listed on the Nasdaq under the ticker symbol "ELRY."
