Company: MBIO
Filing Date: 2025-01-10
Form Type: PRE 14C
Source: 0001104659-25-002602
Chunk: 5

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-10
Form: PRE 14C
Chunk 5
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 Company agreed to issue Series B-1, Series B-2, and Placement Agent warrants to purchase up to an aggregate of
34,767,934 shares of the Company’s common stock.

The Investor held certain outstanding Series A-3 warrants to purchase up to an aggregate of 16,877,638 shares of the Company’s common stock, par value $0.0001 per share, originally issued to the Investor on May 2, 2024 (the “Existing Warrants”). The Existing Warrants had an exercise price of $0.237 per share. Pursuant to the Inducement Letter, the Investor agreed to exercise in full, for cash,
the Existing Warrants in consideration for the Company’s agreement to issue in a private placement (x) new Series B-1 common stock
purchase warrants (the “New Series B-1 Warrants”) to purchase up to 16,877,638 shares of common stock (the “New Series
B-1 Warrant Shares”) and (y) new Series B-2 common stock Purchase Warrants (the “New Series B-2 Warrants” and, together
with the New Series B-1 Warrants, the “New Warrants”) to purchase up to 16,877,638 shares of common stock (the “New
Series B-2 Warrant Shares”).

The closing of the transactions
contemplated pursuant to the Inducement Letter occurred on October 25, 2024 (the “Closing Date”). The Company received aggregate
gross proceeds of approximately $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 (