Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 203

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 203
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, 2023,
pursuant to the Prior Asset Purchase Agreement, the Company completed the sale of all of its assets that primarily relate to the manufacturing
and production of cell and gene therapies at the Facility (such operations, the “Transferred Operations” and such assets,
the “Transferred Assets”) to uBriGene for upfront consideration of $6 million cash (the “Base Amount”). The Transferred
Assets included all of the Company’s assets, except for the Company’s lease and related leasehold improvements of the Facility
and contracts that are primarily used in the Transferred Operations. The Company recorded a gain of $1.4 million in connection with
the sale of the Transferred Assets, and recorded approximately $0.3 million of the base consideration as deferred income, that was
to be recognized upon the transfer of the lease.

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Table of Contents

In connection with
the Prior Asset Purchase Agreement, the Company and uBriGene submitted a voluntary joint notice to the U.S. Committee on Foreign Investment
in the United States (“CFIUS”). Following CFIUS’s review and subsequent investigation of the transactions related to
the Prior Asset Purchase Agreement, on May 13, 2024, the Company, together with uBriGene and CFIUS, executed a National Security
Agreement (the “NSA”), pursuant to which the Company and uBriGene agreed to abandon the transactions related to the Prior
Asset Purchase Agreement and the agreements entered into in connection therewith. The NSA obligated uBriGene and the Company to terminate
agreements between the two parties, including the Manufacturing Services Agreement, Quality Services Agreement, and Subcontracting CDMO
Agreement. In addition, uBriGene must sell, or otherwise dispose of, the equipment assets purchased within 180 days after the execution
of the NSA.

June 2024 Repurchase of Assets

On June 27, 2024 (the “Effective Date”),
the Company entered into an Asset Purchase Agreement (the “Repurchase Agreement”) with uBriGene, pursuant to which the Company
agreed, subject to the terms and conditions set forth therein, to repurchase the Transferred Assets, primarily lab equipment and supplies,
(collectively, the “Repurchased Assets”). Pursuant to the terms of the Repurchase Agreement, the Company and uBriGene also
terminated existing manufacturing and services agreements.

As consideration for
the Rep