Company: MBIO
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001104659-25-019831
Chunk: 6

Company: MUSTANG BIO, INC.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 6
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-1 Warrants, the Series C-1 Warrant Shares, Series C-2 Warrants, the Series C-2 Warrant Shares, the Placement Agent Warrants and
the Placement Agent Warrant Shares were offered by the Company pursuant to a Registration Statement on Form S-1 originally filed on January
15, 2025, as amended (including the prospectus forming a part of such Registration Statement), with the SEC under the Securities Act (File
No. 333-284299), and declared effective by the SEC on February 5, 2025.

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 the Warrants exercise
their Warrants.

Reasons for Stockholder Approval of the Warrant Share Issuance

Nasdaq Listing Rule 5635(d)
requires us to obtain stockholder approval, prior to the issuance of securities, of a transaction other than a public offering involving
the sale, issuance or potential issuance by us of shares of our common stock (or securities convertible into or exercisable for our common
stock) in an amount equal to 20% or more of the Company’s outstanding common stock or voting power outstanding immediately before
the issuance will be sold at a price less than (i) the Nasdaq Official Closing Price immediately preceding the signing of the binding
agreement in connection with such transaction or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com)
for the five trading days immediately preceding the signing of such binding agreement (the “Minimum Price”). In the case of
the Offering, the 20% threshold is determined based on the number of shares of our common stock outstanding immediately preceding the
issuance of the Warrants in the Offering.

Prior
to the Offering, we had 1,295,338 shares of common stock issued and outstanding on February 5, 2025. Therefore, the potential issuance
of 5,475,082 Warrant Shares will constitute greater than 20% of the shares of common stock outstanding immediately prior to the execution
of the Purchase Agreement.

Additionally, under the terms
of the Purchase Agreement, we agreed to seek approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market