Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 200

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 200
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2024 PIPE, and $4.0 million from the October 2024 warrant exercise. The Company recorded an expense
of approximately $0.3 million in general and administrative expenses related to these shares for the year ended December 31, 2024.

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For the year ended December 31, 2023,
the Company did not issue any shares of common stock and recorded the value of 1,319 shares issuable to Fortress, which equaled 2.5%
of the sum of the gross proceeds of $0.2 million from the sale of shares of common stock under Mustang’s At-the-Market Offering
and $4.4 million gross proceeds on the Registered Direct Offering. The shares were subsequently issued on January 2, 2024. The Company
recorded an expense of approximately $0.1 million in general and administrative expenses related to these shares for the year ended
December 31, 2023.

Effective as of March 13, 2015, the Company
entered into a Management Services Agreement (the “MSA”) with Fortress, pursuant to which Fortress renders advisory and consulting
services to the Company. The MSA has an initial term of five years and is automatically renewed for successive five-year terms unless
terminated in accordance with its provisions. Services provided under the MSA may include, without limitation, (i) advice and assistance
concerning any and all aspects of the Company’s operations, clinical trials, financial planning and strategic transactions and financings
and (ii) conducting relations on behalf of the Company with accountants, attorneys, financial advisors and other professionals (collectively,
the “Services”). The Company is obligated to utilize clinical research services, medical education, communication and marketing
services and investor relations/public relation services of companies or individuals designated by Fortress, provided those services are
offered at market prices. However, the Company is not obligated to take or act upon any advice rendered from Fortress and Fortress shall
not be liable for any of its actions or inactions based upon their advice. Pursuant to the MSA and the Company’s Certificate of
Incorporation, Fortress and its affiliates, including all members of the Company’s Board of Directors, will have no fiduciary or
other duty to communicate or present any corporate opportunities to the Company or to refrain from engaging in business that is similar
to that of the Company. In consideration for the Services, the Company will pay Fortress an annual consulting fee of $0.5 million (the