Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 207

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 207
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1.3 million of accrued consideration for the uBriGene Asset Purchase Agreement, see Note 5.

<div align='center'>F-19</div>

Table of Contents

Note 8 - Commitments and Contingencies

Leases

On June 14, 2022, the Company entered into a sublease agreement with The Paul Revere Life Insurance Company. Pursuant to the terms of the sublease lease agreement, the Company agreed to lease 26,503 square feet, located at 1 Mercantile Street, Worcester, MA (the “Mercantile Street Facility”), through January 2030. The Company recorded a right of use asset and related operating lease liability of $2.2 million on the Balance Sheet at the lease inception.

On July 18, 2023, the Company executed, with a
retroactive Effective Date of June 15, 2023, a Third Amendment to Sublease (the “Third Amendment”), with the Paul Revere Life
Insurance Company, pursuant to which the Company relocated from the 26,503 square feet of rentable space on the fourth floor of the Mercantile
Center to 11,916 square feet of rentable space on the second floor of the Mercantile Center. As a result of the modification, the Company
recorded an adjustment to its right of use asset and related operating lease liability of $1.0 million and $1.2 million, respectively,
and $0.2 million gain on the modification of the sublease, which is recorded in Other Income in the Statements of Operations. On June
28, 2024, the Company terminated the lease of its Mercantile Street Facility for a termination fee of $40,000.

On October 27, 2017, the Company entered
into a lease agreement with WCS - 377 Plantation Street, Inc., a Massachusetts nonprofit corporation. Pursuant to the terms
of the lease agreement, the Company agreed to lease 27,043 square feet from the landlord, located at 377 Plantation Street in Worcester,
MA (the “Plantation Street Facility”), through November 2026, subject to additional extensions at the Company’s option
(see Note 13). Base rent, net of abatements of $0.6 million over the lease term, totals approximately $3.6 million, on a triple-net basis.

The terms of the lease also require that the Company
post an initial security deposit of $0.8 million