Space-Eyes to List on Nasdaq in $638M SPAC Merger With McKinley Acquisition

Space-Eyes and McKinley Agree on a Nasdaq-Bound Combination

Space-Eyes, a US provider of AI-driven geospatial intelligence and counter-drone systems, has signed a definitive business combination agreement with McKinley Acquisition, a SPAC. Both boards have approved the deal, which is expected to close in the fourth quarter of 2026 subject to regulatory and shareholder approvals. The combined company will operate as Space-Eyes, Inc. and plans to list on Nasdaq under the ticker 'CUAS'.

The company builds sensor-agnostic counter-uncrewed aerial systems that detect, identify and counter unauthorised drones at military sites, critical infrastructure, borders and public venues. Its CATE AI engine fuses radar, radio frequency, optical, infrared and satellite data, and the same platform supports maritime security and wildfire monitoring for government and commercial customers.

McKinley has secured up to $75m in private investment (PIPE), with the first $5m tranche to be released upon the filing of a registration statement with the SEC. The deal values Space-Eyes at a pro-forma equity value of $638m and an implied enterprise value of $370m. Reuters reported that Eric Trump has become the company's third-largest private investor and will act as strategic adviser. Space-Eyes' revenue has reportedly been about $1m a year, and CEO Jatin Bains says the transaction will fund a shift from research-focused work to broader production contracts and market expansion. Closing is targeted for late 2026.

What the McKinley Deal Means for Space-Eyes' Production Pivot

A $638m Valuation Built on Future Contracts

Space-Eyes is carrying roughly $1m in reported annual revenue into a transaction that assigns it a pro-forma equity value of $638m. That gap is not evidence of overpricing by itself; it reflects a business model shifting from research and development toward production contracts, as the company states. But it does mean the valuation will need to be justified by contract wins, procurement decisions and revenue growth, not by the technology alone.

The SPAC Route and the Shift to Production

McKinley's up to $75m PIPE, with an initial $5m tranche tied to the filing of an SEC registration statement, gives Space-Eyes a defined capital path once the deal closes. McKinley CEO Peter Wright frames the combination around 'autonomous defence' demand and the company's ability to secure contracts. The practical test for Space-Eyes is whether its CATE AI engine, which merges radar, radio frequency, optical, infrared and satellite data, can help clients reuse existing sensors and thereby shorten procurement cycles. If so, the capital could accelerate the transition from R&D to large-scale production; if not, the company remains dependent on customer education and sole-source wins.

The Eric Trump Factor

Reuters reports that Eric Trump, the president's son, has become Space-Eyes' third-largest private investor, will serve as strategic adviser and introduced potential board members. For a defense contractor seeking government and infrastructure clients, high-level connections are commercially relevant. They also add reputational and conflict-of-interest sensitivities that the company will have to manage through disclosure, especially given the regulatory approvals and Nasdaq listing involved.

Interpreting the Deal Terms

Verified figures include the $638m pro-forma equity value, the $370m implied enterprise value, the $75m PIPE, and the Q4 2026 expected close subject to regulatory and shareholder approval and SEC registration. What is not yet clear is the size of Eric Trump's stake, the final PIPE amount, and whether Nasdaq will approve the 'CUAS' ticker. Readers should treat the revenue figure as a reported estimate rather than an audited result.

What Investors and Industry Watchers Should Track Before the Q4 Close

Investors and defense-industry observers should focus on the conditions that determine whether this deal closes and whether the valuation is justified:

• Watch the SEC filing: the initial $5m tranche of McKinley's up to $75m PIPE is scheduled when Space-Eyes files its registration statement — a clear near-term milestone.
• Track closing conditions: shareholder and regulatory approvals, plus Nasdaq consent for the 'CUAS' listing, are the remaining gates to a Q4 2026 close.
• Measure contract progress against revenue: with reported annual revenue around $1m, every production contract award for CATE AI-based counter-drone or geospatial systems is the key evidence that the $638m pro-forma equity value is achievable.
• Review disclosures around the strategic adviser role: Reuters reports Eric Trump is the third-largest private investor and will advise the company; the terms of that role will matter for both governance and reputation.