Micro-cap aviation software maker Volato pivoting to AI infrastructure through merger

Shares of Volato Group, a micro-cap maker of aviation software, surged more than 55% on Wednesday. The company announced that it is repositioning itself around AI infrastructure through a merger with Alignment Engine, a private firm that owns a data center campus in Ohio.

Volato jumped more than 55% on the NYSE American on Wednesday to $0.24 per share. The rally followed the micro-cap software developer’s announcement of a merger with Alignment Engine.

Volato will remain publicly traded but will reposition itself around AI infrastructure, high-performance computing, and data center development through Alignment Engine’s industrial campus in Ohio, according to the press release. Alignment Engine was valued at $500 million for the transaction. For comparison, Volato had a market capitalization of $13 million at Wednesday’s close.

The information released by the company indicates that Alignment Engine shareholders will receive Volato convertible preferred stock, which will subsequently be converted into common stock. The merger was said not to require approval from the micro cap’s shareholders; they will only have to approve the conversion.

The press release does not provide detailed terms of the merger or a specific timetable for its completion. The parties said additional information about the transaction would be provided in filings with the U.S. Securities and Exchange Commission. In premarket trading on Thursday, Volato shares were down more than 20% as of this writing.

Volato announced the merger with Alignment Engine just two months after terminating a deal with M2i Global, which develops critical-mineral supply chains. The companies announced the merger in June 2025, while shareholders of both companies approved it in May 2026. A month later, Volato sent M2i notice that it was terminating the deal, explaining that the merger had not been completed by the agreed deadline.

At the same time, the micro cap announced it had received two alternative proposals and was evaluating them. Shortly afterward, the company announced a $2.2 million investment from medical-device maker Catheter Precision and other investors. The funds were intended to strengthen Volato’s balance sheet.

Volato has recently been grappling with debt and falling revenue, which has weighed on its shares. The stock has plunged 84% over the last 12 months, even after Wednesday’s rally. Most of the decline came around mid-November. At that time, the company reported quarterly revenue of $0.4 million; in the same period of 2024, revenue stood at $40.3 million, implying a year-over-year decline of more than 99%.

The company last reported earnings in July, when it provided only preliminary data for the second quarter of this year. Volato’s sales were said to have risen around 200% year over year to $2 million, while its liabilities fell 75% to $5 million.