Columbus Circle Capital Corp II (Nasdaq: CMII), which will be renamed Inflection Point Acquisition Corp VII (IPAC), announced that Elroy Air received a $46,058,871 firm-fixed-price U.S. Army contract to develop an autonomous hybrid-electric VTOL uncrewed aircraft system for modular multi-mission payload delivery. Work will be performed in California with an estimated completion in 2029, and $5,135,354 of Fiscal Year 2026 RDT&E funds were obligated at award.
The contract supports Elroy Air’s Chaparral heavy-cargo VTOL drone, designed to carry 500+ pounds up to 450 miles using a hybrid-electric powertrain. CMII previously announced a definitive business combination agreement under which Elroy Air will go public at an $800 million pre-money valuation and about $1.0 billion enterprise value. The deal includes more than $165 million in committed PIPE capital, of which $65 million was funded at signing, and is expected to close in Q4 2026, subject to customary approvals. The combined company plans to trade on Nasdaq as “ELRY.”
Elroy Air, a U.S. developer of autonomous heavy‑cargo drones, announced a $46 million multi‑year contract with the U.S. Army to develop an autonomous hybrid‑electric VTOL uncrewed aircraft system for modular multi‑mission payload delivery.
The program will enhance the Chaparral drone’s payload versatility, delivery mechanisms and battlefield-enabling technologies, including expeditionary mission planning, cyber‑protected communications, GPS‑denied navigation, elevated autonomy and reliable field operation. Elroy Air plans to begin U.S. manufacturing of Chaparral this year via an exclusive partnership with Kratos Defense & Security Solutions (Nasdaq: KTOS). The company has also signed a definitive business combination agreement with Columbus Circle Capital Corp II (Nasdaq: CMII), to be renamed Inflection Point Acquisition Corp VII (Nasdaq: IPXG), under which Elroy Air would become a publicly traded company, with a draft Form S‑4 registration statement confidentially submitted to the SEC.
Elroy Air, a U.S. developer of autonomous heavy‑cargo VTOL drones, and Columbus Circle Capital Corp II (Nasdaq: CMII), a SPAC to be renamed Inflection Point Acquisition Corp VII (Nasdaq: IPXG), have confidentially submitted a draft Form S‑4 to the SEC for their proposed business combination. The deal is expected to close in Q4 2026, subject to regulatory and shareholder approvals.
The transaction values Elroy Air at $800 million pre‑money, with an expected enterprise value of about $1.0 billion at closing. More than $165 million in committed PIPE capital, including $65 million funded at BCA signing, is expected to fully fund commercial‑scale production of Elroy Air’s Chaparral 500+ pound‑capacity, up to 450‑mile‑range hybrid‑electric cargo drone with U.S. partner Kratos Defense & Security Solutions. The combined company is expected to trade on Nasdaq under the ticker “ELRY”.
Elroy Air announced that, under a U.S. Army contract, it has equipped its Chaparral autonomous heavy‑cargo drone with three unattended delivery modes: precision airdrop from hover, precision airdrop in forward flight, and ground delivery, all without personnel or infrastructure at the delivery site.
In a July 15, 2026 demo, Chaparral released a 68‑pound payload from hover and a 70‑pound payload from 65 feet in forward flight using pre‑programmed coordinates. These modes will be available on production Chaparral aircraft to be manufactured by Kratos Defense & Security Solutions (Nasdaq: KTOS) in Sacramento. Elroy Air also recently entered a definitive Business Combination Agreement with Columbus Circle Capital Corp II (Nasdaq: CMII), to be renamed Inflection Point Acquisition Corp VII (Nasdaq: IPXG), backed by Cohen & Company (NYSE American: COHN), through which Elroy Air is expected to become publicly traded.