Company: MBIO
Filing Date: 2025-01-22
Form Type: DEF 14C
Source: 0001104659-25-005251
Chunk: 6

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-22
Form: DEF 14C
Chunk 6
---
4 million from the exercise of the Existing Warrants by the Investor, before deducting placement agent
fees and other expenses payable by the Company. The Company intends to use the net proceeds for working capital and general corporate
purposes.

The Company engaged H.C.
Wainwright & Co., LLC (“H.C. Wainwright”) to act as its exclusive placement agent in connection with the transactions
summarized above and paid H.C. Wainwright a cash fee equal to 7.0% of the aggregate gross proceeds from the exercise of the Existing
Warrants. In addition, the Company (i) reimbursed H.C. Wainwright for $50,000 of the fees and expenses of H.C. Wainwright’s legal
counsel and other of its out-of-pocket expenses, (ii) reimbursed H.C. Wainwright for its non-accountable expenses in the amount of $25,000,
and (iii) paid a management fee equal to 1.0% of the gross proceeds raised. The Company also issued to H.C. Wainwright or its designees
(“PA Warrant Holders”) placement agent warrants (the “Placement Agent Warrants”) to purchase up to 1,012,658
shares of common stock (the “Placement Agent Warrant Shares,” and, together with the New Series B-1 Warrant Shares and the
New Series B-2 Warrant Shares, the “New Warrant Shares”). The Placement Agent Warrants have the same terms as the New Series
B-1 Warrants, except that the Placement Agent Warrants have an exercise price equal to $0.2963 per share.

The Company filed a registration
statement on Form S-3 (File No. 333-283420) under the Securities Act providing for the resale of the New Warrant Shares (the “Resale
Registration Statement”) on November 22, 2024, which was declared effective by the SEC on November 27, 2024. The Company will use
best efforts to keep the Resale Registration Statement effective at all times until the Investor no longer owns any New Warrants or New
Warrant Shares.

Effect of the Issuance of the Warrant Shares

The potential issuance of
the Warrant Shares would result in a substantial and significant increase in the number of shares of our common stock outstanding, and
our stockholders will incur substantial dilution of their percentage ownership to the extent that the Holders of