Merlin raises $80 million through private equity investment

Merlin, Inc. (NASDAQ: MRLN) announced it has secured $80 million in equity capital through a private investment in public equity transaction with an existing institutional shareholder, according to a company statement.

The autonomous flight technology developer will issue 8 million shares of common stock and warrants to purchase 4 million additional shares at $6.67 per share, with the warrants expiring five years from the issue date. The transaction is expected to close on or about May 1, 2026.

The company currently holds approximately $107 million in cash and cash equivalents. With the new funding, Merlin expects total cash resources of $183 million. The proceeds will support platform development, regulatory approval activities, program capacity scaling, and execution of customer contracts.

"This investment reflects the continued conviction of a long-term partner who knows our business well and has seen our progress firsthand," said Matt George, CEO and Founder of Merlin. "We have a clear program roadmap and a defined path to revenue, and this capital provides additional flexibility to accelerate execution against both."

Cantor Fitzgerald & Co. served as lead placement agent and TD Cowen acted as co-placement agent for the transaction. Latham & Watkins represented Merlin, while Jones Day served as legal counsel to the placement agents.

The securities are being issued under Section 4(a)(2) of the Securities Act of 1933 in a transaction not involving a public offering. Merlin has agreed to file a registration statement with the Securities and Exchange Commission for the resale of the issued shares and warrant shares.

Boston-based Merlin develops autonomous flight software for military and civil aircraft programs and reports having more than $100 million in awarded contracts from military customers.

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