Israel Acquisitions (ISRL), a special purpose acquisition company, has agreed to merge with Gadfin, valuing the Israeli drone delivery company at $200 million, the companies said Monday.

The combined company will be listed on Nasdaq and will utilize Gadfin's hydrogen-powered drones, capable of long-range, all-weather delivery of critical cargo such as medical supplies, the parties said.

The deal is expected to be completed in H2, pending regulatory and shareholder approvals.

Gadfin's current management will lead the merged entity, which will have a staggered board of up to seven directors, with key stakeholders subject to a six-month lock-up period, the parties said.

Shares of Israel Acquisitions were up more than 2% in recent Monday premarket activity.