Surf Air Mobility Co., Ltd. (NYSE: SRFM) has announced a $100 million strategic initiative aimed at advancing its SurfOS software and enhancing its financial position.
Raise $26M in new equity to fund SurfOS
This deal has successfully raised $26 million in new equity to support the development and launch of SurfOS.
Importantly, an institutional investor, along with the co-founders and affiliated parties of Surf Air Mobility, acquired 6 million shares and warrants for an equal number of shares at $3.32 each, matching Friday’s closing price, amounting to $20 million in total.
Out of these, about 4 million shares and warrants were offered in a registered direct sale, while 2 million shares were sold through a private placement.
The warrants can be exercised immediately and will expire two years from when they are issued.
This transaction is anticipated to finalize around November 12, 2025, pending standard conditions.
Palantir stock issue
In another development, Surf Air intends to issue $6 million in stock. Palantir Technologies Co., Ltd. (NASDAQ: PLTR) has reinforced its partnership with SurfOS, integrating its AI and Foundry platform to enhance predictive and adaptive operations as a part of an ongoing software access agreement.
The funding will be used to develop Surf Air Mobility’s three main SurfOS products, expand engineering and sales in preparation for a 2026 launch, and create new SurfOS modules to increase its market share in air mobility software.
Leadership commentary
Sudin Shahani, co-founder and director at Surf Air Mobility, commented, “SurfOS is designed to be the AI-enabled software for an industry on the brink of a technological shift. We believe this funding will help us bring top-tier products to market faster in this rapidly changing air mobility sector.”
Refinancing existing debt
Additionally, Surf Air Mobility raised gross proceeds of $65 million by completing a $74 million issuance of senior secured convertible notes, selling them at 87.8% of their nominal value.
The company intends to use these proceeds to pay off $51 million from a four-year credit agreement with a Comvest affiliate and $8 million in principal under a secured arrangement with Partners For Growth, thereby reducing annual cash interest expenses by about $5.5 million.
Price action: SFRM stock was observed trading 4.52% lower at $3.170 during the latest check on Monday.
