MultiSensor AI (MSAI) stock plummeted on Friday after the AI-powered multi-sensing platform company announced the pricing of a private placement. Under the terms of this agreement, the company will sell 34,229,829 shares and warrants for another 68,459,658 shares at a combined price of $0.409 each. The warrants will also have an exercise price that matches the private placement price. However, the warrants aren’t exercisable without shareholder approval and have a seven-year term.
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MultiSensor AI expects gross proceeds of $14 million from this private placement. The company intends to use the net proceeds from this offering for working capital and other general corporate purposes, including strategic growth initiatives and the ongoing development of its MSAI Connect platform. The private placement was led by 325 Capital, LLC and included other existing and new investors.
Asim Akram, President and CEO of MultiSensor AI, said, “The reaffirmed commitment from our investors reinforces our strategic vision and validates the progress we continue to make. We remain focused on disciplined execution, operational excellence, and delivering sustainable long-term value for our shareholders.”
MultiSensor AI Stock Movement Today
MultiSensor AI stock was down 40.74% in pre-market trading on Friday, following a 101.73% rally yesterday. The shares were down 26.63% year-to-date and 31.99% over the past 12 months.
With today’s news came heavy trading of MSAI stock, as more than 4.4 million shares changed hands. That’s well above the company’s three-month daily average of about 295,000 units.
Is MultiSensor AI Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for MultiSensor AI is Moderate Buy, based on a single Buy rating over the past three months. With that comes a $3 price target for MSAI stock, representing a potential 271.01% upside for the shares.
