Company: MBIO
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001410578-25-000028
Chunk: 248

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-15
Form: S-1
Chunk 248
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, without limitation, (i) advice and assistance concerning any and all aspects of the Company’s operations, clinical trials, financial planning and strategic transactions and financings and (ii) conducting relations on behalf of the Company with accountants, attorneys, financial advisors and other professionals (collectively, the “Services”). The Company is obligated to utilize clinical research services, medical education, communication and marketing services and investor relations/public relation services of companies or individuals designated by Fortress, provided those services are offered at market prices. However, the Company is not obligated to take or act upon any advice rendered from Fortress and Fortress shall not be liable for any of its actions or inactions based upon their advice. Pursuant to the MSA and the Company’s Certificate of Incorporation, Fortress and its affiliates, including all members of the Company’s Board of Directors, will have no fiduciary or other duty to communicate or present any corporate opportunities to the Company or to refrain from engaging in business that is similar to that of the Company. In consideration for the Services, the Company will pay Fortress an annual consulting fee of $ 0.5million (the “Annual Consulting Fee”), payable in advance in equal quarterly installments on the first business day of each calendar quarter in each year, provided, however, that such Annual Consulting Fee shall be increased to $ 1.0million for each calendar year in which the Company has net assets in excess of $ 100million at the beginning of the calendar year. The Company records fiftypercent of the Annual Consulting Fee in research and development expense and fiftypercent in general and administrative expense in the Statement of Operations. For the years ended December 31, 2023 and 2022, the Company recorded expense of $ 1.0million and $ 0.5million, respectively, related to this agreement. For the year ended December 31, 2023, the Company did not issue any shares of common stock and recorded the value of 66,003shares issuable to Fortress, which equaled 2.5% of the sum of the gross proceeds of $ 0.2million from the sale of shares of common stock under Mustang’s At-the-Market Offering and $ 4.4million gross proceeds on the Registered Direct Offering. The Company recorded an expense of approximately $ 0.1million in general and administrative expenses related to these shares for the year ended December 31, 2023. For the year ended December 31, 2022, the Company issued 13,