Merlin, Inc. Secures \$80 Million PIPE to Accelerate Autonomous Flight Program and Growth Plans

Key Highlights

• Merlin, Inc. (Nasdaq: MRLN) announces a \$80 million private investment in public equity (PIPE) from an existing institutional shareholder.
• This capital raise boosts Merlin’s cash resources to approximately \$183 million, up from \$107 million before the transaction.
• Funds will accelerate program execution, support commercial launch timelines, and expand revenue-generating opportunities.
• The offering includes 8 million new shares plus warrants for an additional 4 million shares at \$6.67/share, expiring in 5 years.
• Transaction expected to close on or about May 1, 2026.
• Merlin commits to filing a resale registration statement for the new shares and warrant shares.

Detailed Report

Merlin, Inc., a Boston-based leader in assured, autonomous flight technologies, has entered into a definitive securities purchase agreement with a core institutional investor, securing \$80 million in equity capital through a private investment in public equity (PIPE). This significant capital infusion not only reflects strong ongoing support from a long-term shareholder but also materially strengthens Merlin’s financial position, raising its total cash and cash equivalents to about \$183 million.

The new funding will give Merlin substantial financial flexibility to accelerate its growth trajectory, particularly for its 2026-2027 program milestones and the commercial launch of its autonomous flight solutions. The proceeds will be deployed strategically to:

• Advance and expand Merlin’s core autonomy platform development
• Support regulatory approval activities, which are critical for commercialization
• Scale program capacity to meet growing demand
• Facilitate execution and expansion of both existing and new customer contracts
• Drive long-term value creation and revenue generation

CEO and Founder Matt George commented, “This investment reflects the continued conviction of a long-term partner who knows our business well and has seen our progress firsthand. We have a clear program roadmap and a defined path to revenue, and this capital provides additional flexibility to accelerate execution against both, unlocking growth opportunities that were previously out of reach.”

Transaction Details

• Merlin will issue 8 million shares of common stock and warrants to purchase an additional 4 million shares at a strike price of \$6.67 per share, with the warrants expiring five years from the issue date.
• Cantor Fitzgerald & Co. acted as lead placement agent; TD Cowen as co-placement agent.
• Latham & Watkins, LLP advised Merlin; Jones Day advised the agents.
• The transaction is expected to close on or about May 1, 2026.
• The securities are being issued in a private (non-public) offering under Section 4(a)(2) of the Securities Act, and are therefore unregistered at issuance. Merlin has agreed to file a registration statement with the SEC so that the new PIPE shares and warrant shares can be resold in the public market.

Why This Matters for Shareholders

• This \$80 million PIPE provides Merlin with ample liquidity to execute its growth plans and hit key program milestones. This can be seen as a positive signal regarding the company’s trajectory.
• The transaction introduces up to 12 million additional shares (8 million common + 4 million warrant shares if exercised) to Merlin’s share base over time. Shareholders should consider potential dilution from this new issuance, which may impact future share value.
• Proceeds are earmarked for initiatives that can directly impact revenue generation and market expansion, including regulatory approvals and scaling operations.
• A successful registration and resale of the new shares could improve trading liquidity, but also may temporarily increase selling pressure as shares become freely tradable.
• The PIPE is being conducted with a knowledgeable, long-term investor, which may be interpreted as a vote of confidence in Merlin’s strategy and execution.

About Merlin, Inc.

Merlin is the leading U.S.-based developer of cost-effective, takeoff-to-touchdown autonomy for both legacy and next-generation airborne systems. Its AI-powered, aircraft-agnostic software supports military and civil programs, with proven performance in hundreds of autonomous flights worldwide. Merlin has secured over \$100 million in contracts from military customers, addressing national security needs with safe, reliable autonomy solutions. More on Merlin.

Forward-Looking Statements & Risks

This announcement contains forward-looking statements, including anticipated use of proceeds, commercial launch plans, and program milestones. These are subject to risks and uncertainties that could cause actual results to differ materially, including regulatory, operational, and market risks. Investors should review Merlin’s SEC filings, including its April 21, 2026 Prospectus, for a complete discussion of these risks.

Contact

Media Contact: Kate Gundry
Phone: 617-842-6064
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information is based on publicly available documents as of April 29, 2026. Investors should consult their own advisors and review official filings before making investment decisions. The author and publisher assume no responsibility for investment actions taken based on this article.

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