MSAI · MultiSensor AI Holdings, Inc.

The warrant adjustment stems directly from the Company’s 1-for-40 reverse stock split, which became effective April 13, 2026, and triggered the contractual Share Combination Event provisions in the original warrant agreement. Per those terms, the exercise price was reduced and the number of underlying shares increased proportionally to maintain the aggregate exercise value — a standard anti-dilution mechanism. The new $5.98 exercise price represents the lowest daily volume-weighted average price during the five-trading-day Share Combination Adjustment Period following the split, subject to the stated floor of $5.9776 (equivalent to $0.14944 pre-split). This floor ensures the Company retains meaningful pricing control and prevents excessive downward pressure on the exercise price from short-term volatility. The resulting 4,682,273.85 warrant shares represent a post-split count derived from the original 68,459,652 shares, confirming the precise 1:40 scaling. For investors, this adjustment resets the economic threshold for warrant exercise and affects potential future dilution; the floor also signals management’s intent to preserve capital structure integrity amid structural changes. No new securities were issued — only the terms of existing warrants were modified per their governing provisions.