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MultiSensor AI cancels earnout provision, waives lock-up

EditorEmilio Ghigini
Published 2024-03-07, 08:06 a/m
© Reuters.
MSAI
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HOUSTON - MultiSensor AI Holdings, Inc. (NASDAQ:MSAI), a company specializing in AI-driven predictive maintenance, has made two significant changes to its financial agreements, effective today.

The company has terminated an earnout provision related to its December 5, 2022, business combination with SportsMap Tech Acquisition Corp. This provision would have necessitated issuing up to 2.4 million shares to former stakeholders of Infrared Cameras Holdings, Inc., contingent on the achievement of specific future events.

In a parallel move, MultiSensor AI has also waived the lock-up restrictions on over 2.1 million shares held by unaffiliated investors. This waiver is anticipated to help the company meet the Nasdaq Stock Market's listing standards. Lock-up restrictions for affiliated shareholders remain unchanged.

These strategic decisions are detailed in the company's Current Report on Form 8-K filed today. MultiSensor AI emphasizes that this announcement does not constitute an offer for the sale of securities.

The company, which pivoted from selling industrial thermal sensors to a full-stack, AI-driven predictive maintenance solution, has seen significant growth with its SmartIR platform launched in mid-2023. MultiSensor AI's solutions, which include thermal imaging, acoustic imaging, and vibration sensing, are utilized across various industries to monitor critical assets.

The termination of the earnout provision and the waiver of lock-up restrictions are administrative changes aimed at improving the company's compliance with Nasdaq's listing requirements. These actions are based on a press release statement and do not imply any future performance or outcomes for MultiSensor AI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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