Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 199

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 199
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 to Fortress for the Annual Stock Dividend, representing 2.5% of the
fully-diluted outstanding equity of Mustang on January 1, 2024. The value of these shares is shown in the Statement of Stockholders’
Equity at December 31, 2023, as Common stock issuable – Annual Stock Dividend. The Company recorded an expense of approximately
$0.5 million in research and development – licenses acquired related to these issuable shares during the year ended December 31, 2023.

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Table of Contents

As additional consideration under the Mustang
Founders Agreement, Mustang will also: (i) pay an equity fee in shares of common stock, payable within five (5) business days
of the closing of any equity or debt financing for Mustang that occurs after the effective date of the Mustang Founders Agreement and
ending on the date when Fortress no longer has majority voting control in the Company’s voting equity, equal to two and one-half
(2.5%) of the gross amount of any such equity or debt financing, with the number of shares issuable based on the share price of the equity
round or, in the instance of debt financing, the closing price of the Company’s common shares on the day prior to the closing; and
(ii) pay a cash fee equal to four and one-half percent (4.5%) of the Company’s annual net sales, payable on an annual
basis, within ninety (90) days of the end of each calendar year. In the event of a Change in Control, the Company will pay a
one-time change in control fee equal to five (5x) times the product of (A) net sales for the twelve (12) months immediately
preceding the change in control and (B) four and one-half percent (4.5%). The Company records the value of all shares issued
for the equity fee component of the Mustang Founders Agreement as Stock-based compensation expense in its Statements of Operations.

For the year ended December 31, 2024,
the Company issued 23,450 shares of common stock to Fortress, which equaled 2.5% of the sum of the gross proceeds of $2.6 million
from the sale of shares of common stock under Mustang’s At-the-Market Offering, $4.0 million gross proceeds from the May 2024 Public
Offering, $2.5 million from the June