Surf Air Mobility Inc. (NYSE:SRFM) disclosed a $100 million strategic deal for advancing its SurfOS software and boosting the balance sheet.
$26 Million in New Equity to Fund SurfOS
The deal raised $26 million from new equity to fund SurfOS development and commercialization.
Notably, an institutional investor, along with Surf Air Mobility’s co-founder and a related party, purchased 6.0 million shares and warrants to acquire the same number of shares at $3.32 each, matching Friday’s closing price, for a total of $20 million.
Also Read: Surf Air Mobility Stock Dips After Wider-Than-Expected Q2 Loss
Of this, around 4.0 million shares and warrants were sold via a registered direct offering, and 2.0 million via a private placement.
The warrants are immediately exercisable and expire two years from issuance.
The transaction is expected to close around November 12, 2025, pending customary conditions.
Palantir Stock Issuance
Apart from this, Surf Air plans to issue $6 million in stock to Palantir Technologies Inc. (NASDAQ:PLTR) as prepayment for continued software access, strengthening their SurfOS partnership and integrating Palantir’s AI and Foundry platforms to enhance predictive, adaptive operations.
Surf Air Mobility will use the fund to advance its three flagship SurfOS products, expand engineering and sales ahead of the 2026 rollout, and invest in new SurfOS modules to capture a larger share of the air mobility software market, among others.
Leadership Commentary
Sudhin Shahani, Co-founder and Board member of Surf Air Mobility, added, “SurfOS aims to become the AI-enabled software for an industry at the start of its technology transition. We believe this financing will position us to be early to market with a best-in-class product designed for the rapidly evolving air mobility industry.”
Refinancing Existing Liabilities
Along with this, Surf Air Mobility completed a $74 million senior secured convertible note in a private placement, generating $65 million in gross proceeds after being sold at 87.8% of face value.
The company plans to use proceeds to repay $51 million under the 4-year credit agreement with Comvest affiliates and $8 million of principal on a secured note with Partners For Growth, cutting annualized cash interest by roughly $5.5 million.
Price Action: SFRM shares were trading lower by 4.52% to $3.170 at last check Monday.
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