Cargo drone startup Elroy Air has agreed to list in the U.S. through a merger with blank-check firm Columbus Circle Capital Corp II in a deal valued at roughly $1 billion, the companies said on Friday.
The deal is expected to generate proceeds of at least $165 million from committed investors, with up to $230 million from the SPAC's trust account, depending on redemptions.
A SPAC is a shell company that raises money through an IPO to merge with a private business, allowing it to go public without a traditional IPO.
Elroy Air, which is developing autonomous heavy-cargo drones for defense, rapid response and commercial logistics, expects to be listed on the Nasdaq under the ticker symbol "ELRY."
It intends to use the proceeds to accelerate its technology and platform development, enable strategic M&A, and hire talent in software and hybrid-electric systems.
The companies expect the deal to close in late 2026.
Bloomberg News first reported the news earlier on Friday.
