Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 173

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 173
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 17, 2016, and again on July 26, 2016 (the “Mustang Founders
Agreement”). The Mustang Founders Agreement provides that, in exchange for the time and capital expended in the formation of our
company and the identification of specific assets the acquisition of which result in the formation of a viable emerging growth life science
company, Fortress loaned $2.0 million, representing the up-front fee required to acquire our license agreement with COH. The Mustang Founders
Agreement has a term of 15 years, which upon expiration automatically renews for successive one-year periods unless terminated by Fortress
and the Company or a Change in Control (as defined in the Mustang Founders Agreement) occurs. Concurrently with the second amendment on
July 26, 2016, to the Mustang Founders Agreement, Fortress entered into an Exchange Agreement whereby Fortress exchanged its 7.25
million Class B Common shares for 9,333 common shares and 250,000 Class A Preferred shares. Class A Preferred Stock is
identical to common stock other than as to voting rights, conversion rights and the Annual Stock Dividend right (as described below).
Each share of Class A Preferred Stock is entitled to vote the number of votes that is equal to one and one-tenth (1.1) times a fraction,
the numerator of which is the sum of (A) the shares of our outstanding common stock and (B) the whole shares of our

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common stock into which the shares of outstanding
Class A common stock and Class A Preferred Stock are convertible and the denominator of which is the number of shares of outstanding
Class A Preferred Stock. Thus, the Class A Preferred Stock will at all times constitute a voting majority. Each share of Class A
Preferred Stock is convertible, at Fortress’ option, into one fully paid and nonassessable share of our common stock, subject to
certain adjustments. As holders of Class A Preferred Stock, Fortress will receive on each January 1 (each a “Annual Stock
Dividend Payment Date”) until the date all outstanding Class A Preferred Stock is converted into common stock, pro rata per
share dividends paid in additional fully paid and nonassessable shares of common stock (“Annual Stock Dividends”) such that
the aggregate number of shares of common stock issued pursuant to such Annual Stock Dividend is equal to two and one-half percent
(2.5