Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 235

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 235
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 A Preferred
Stock is convertible, at the option of the holder, into one fully paid and nonassessable share of Common Stock, subject to certain adjustments.
If the Company, at any time effects a subdivision or combination of the outstanding Common Stock (by any stock split, stock dividend,
recapitalization, reverse stock split or otherwise), the applicable conversion ratio in effect immediately before that subdivision is
proportionately decreased or increased, as applicable, so that the number of shares of Common Stock issuable on conversion of each share
of Class A Preferred Stock shall be increased or decreased, as applicable, in proportion to such increase or decrease in the aggregate
number of shares of Common Stock outstanding. Additionally, if any reorganization, recapitalization, reclassification, consolidation or
merger involving the Company occurs in which the Common Stock (but not the Class A Preferred Stock) is converted into or exchanged for
securities, cash or other property, then each share of Class A Preferred Stock becomes convertible into the kind and amount of securities,
cash or other property which a holder of the number of shares of Common Stock of the Company issuable upon conversion of one share of
the Class A Preferred Stock immediately prior to such reorganization, recapitalization, reclassification, consolidation or merger would
have been entitled to receive pursuant to such transaction.

Dividends

The holders of the outstanding
shares of Class A Preferred Stock receive on each January 1 (each a “PIK Dividend Payment Date”) after the original
issuance date of the Class A Preferred Stock until the date all outstanding Class A Preferred Stock is converted into Common Stock or
redeemed (and the purchase price is paid in full), pro rata per share dividends paid in additional fully paid and non-assessable shares
of Common Stock such that the aggregate number of shares of Common Stock issued pursuant to such PIK dividend is equal to 2.5% of the
Company’s fully-diluted outstanding capitalization on the date that is one business day prior to any PIK Dividend Payment Date (“PIK Record Date”). In the event the Class A Preferred Stock converts into Common Stock, the holders shall receive all PIK dividends
accrued through the date of such conversion. No dividend or other distribution shall be paid, or declared and

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set apart for payment (other than dividends payable
solely in capital stock on the capital stock) on the shares of Common Stock until all PI