Elroy Air raises PIPE investment to $175M with Lockheed Martin

Elroy Air has expanded its private investment in public equity (PIPE) commitments to $175 million, up from a previously disclosed amount, with participation from existing investors including Lockheed Martin Ventures and Inflection Point. Of that total, $75 million has been funded ahead of the closing of Elroy Air's business combination with Inflection Point Acquisition Corp. VII (Nasdaq: IPXG).

Lockheed Martin Ventures and Elroy Air said they intend to collaborate on advanced autonomous systems and joint business development across commercial and defense markets.

Elroy Air was recently awarded a multi-year U.S. Army contract worth up to $46 million, focused on the company's Chaparral heavy-cargo drone. The contract will fund development of modular payload versatility and delivery mechanisms for use in contested environments.

The company also completed the first autonomous uncrewed flights authorized under the Federal Aviation Administration's eVTOL Integration Pilot Program (eIPP), conducted in partnership with LIFTOFF Louisiana and Bristow Group along the Gulf Coast.

Following those flights, Bristow Group expanded its early delivery reservations for the Chaparral drone to 15 units, up from five, and maintains a pre-order agreement for up to 100 aircraft.

Kratos Defense & Security Solutions, the exclusive U.S. manufacturer of the Chaparral, is set to produce the aircraft at its Sacramento, California facility, with the first production unit planned for late 2026.

The business combination between Elroy Air and Inflection Point remains subject to shareholder approval and other customary closing conditions. According to a press release, the combined entity will seek to list on a U.S. national securities exchange upon completion of the transaction.

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