Elroy Air has been awarded a $46,058,871 firm-fixed-price contract by the U.S. Army for the development of an autonomous hybrid-electric vertical take-off and landing (VTOL) uncrewed aircraft system designed for modular multi-mission payload delivery, according to a statement from Columbus Circle Capital Corp II (Nasdaq: CMII).

Work will be performed in California, with an estimated completion date of 2029. Army Contracting Command at Aberdeen Proving Ground, Maryland, is the contracting activity. Fiscal Year 2026 research, development, test and evaluation funds of $5,135,354 were obligated at the time of the award.

The contract focuses on Elroy Air's Chaparral drone, a VTOL aircraft designed to carry more than 500 pounds of cargo with a hybrid-electric powertrain and a range of up to 450 miles. The award will fund enhancements to the aircraft's modular payload versatility and delivery mechanisms for use in contested environments alongside military personnel.

Elroy Air is also in the process of becoming a publicly traded company through a business combination with CMII. The transaction values Elroy Air at $800 million pre-money, with an expected enterprise value of approximately $1.0 billion upon closing. The deal includes more than $165 million in committed PIPE capital, of which $65 million was funded at the time the business combination agreement was signed.

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory and shareholder approval. Upon closing, the combined company is expected to list on the Nasdaq under the ticker symbol "ELRY."