Elroy Air is set to list on Nasdaq through a merger with special purpose acquisition company Inflection Point Acquisition Corp VII in a transaction valuing the company at approximately $1 billion post-deal.
The US developer of autonomous heavy-cargo drones said the listing will provide access to capital to accelerate production of its flagship Chaparral aircraft and meet growing demand across defence, logistics and rapid-response markets.
“As a public company with access to significant capital, Elroy Air will be ideally positioned to meet the rising demand for Chaparral, our heavy-cargo drone,” said Elroy Air CEO Andrew Clare.
The transaction values Elroy Air at approximately $800 million on a pre-money basis and around $1 billion in enterprise value following completion. It includes more than $165 million in committed PIPE financing, with the potential for up to $230 million in additional proceeds depending on shareholder redemptions.
The company said the funding will support development, scaling and manufacturing, including production partnerships with Kratos Defense & Security Solutions. The first production aircraft are expected to be delivered in late 2026.
Elroy Air said the deal will allow it to rapidly scale production to support US and allied defence requirements, as well as commercial demand. Clare said the transaction would help the company deliver on the US focus on “drone dominance” by expanding manufacturing capacity.
Elroy Air develops autonomous vertical take-off and landing aircraft designed to transport heavy cargo without the need for traditional runway infrastructure. Its Chaparral aircraft is a hybrid-electric system capable of carrying more than 500 pounds of cargo over distances of up to 450 miles.
The company reports a demand pipeline of more than 1,400 aircraft, representing more than $5 billion in potential revenue. Customers and partners include FedEx, Bristow Group and Barq Group, while Elroy Air also holds more than six years of active programmes with the US Army, Marine Corps and Air Force.
Additional initiatives include a $200 million joint venture agreement with Barq Group to establish manufacturing operations in Abu Dhabi serving the Middle East and North Africa region. The company has also completed testing with Japan’s Ground Self-Defence Force, where Chaparral passed all 22 assessed test items for inter-island logistics.
The transaction is expected to close in the fourth quarter of 2026, subject to regulatory and shareholder approvals. Upon completion, the combined company will trade on Nasdaq under the ticker symbol ELRY. Barclays is serving as exclusive financial adviser to Elroy Air.
