Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 215

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 215
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), representing 125% of the purchase price
per share of common stock in the Registered Direct Offering.

Induced Warrant Exercise

On October 24, 2024, we entered into an inducement
offer letter agreement (the “Inducement Letter”) with a certain investor (the “Holder”) that held outstanding
Series A-3 warrants (the “Existing Warrants”) to purchase up to an aggregate of 337,552 shares of our common stock, originally
issued to the Holder on May 2, 2024.

Pursuant to the Inducement Letter, the Holder
agreed to exercise for cash the Series A-3 warrants at the exercise price of $11.85 per share in exchange for our agreement to issue in
a private placement new Series B Common Stock purchase warrants to purchase up to (i) 337,552 shares of common stock (the “New Series
B-1 Warrant Shares”) and (ii) 337,552 shares of common stock (the “New Series B-2 Warrant Shares” and collectively,
the “New Warrants”). Each Warrant has an exercise price of $13.50 per share and will be exercisable beginning on the effective
date of stockholder approval of the issuance of the shares upon exercise of the Warrants (the “Warrant Stockholder Approval”).
The New Series B-1 Warrant will expire on the five-year anniversary of the Warrant Stockholder Approval. The New Series B-2 Warrant will
expire on the twelve-month anniversary of the Warrant Stockholder Approval.

The closing of the transaction contemplated pursuant
to the Inducement Letter occurred on October 25, 2024 (the “Closing Date”). We received aggregate gross proceeds of approximately
$4.0 million from the exercise of the Existing Warrants by the Holder, before deducting placement agent fees and other expenses payable
by us of approximately $0.4 million.

We engaged Wainwright to act as our exclusive
agent in connection with the transaction summarized above and paid Wainwright a cash fee equal to 7.0% of the aggregate gross proceeds
from the exercise of the Existing Warrants. In addition, we (i) reimbursed Wainwright for $50,000 of the fees and expenses of Wainwright’s
legal counsel and other of its out-of-pocket expenses, (ii) reimbursed Wainwright for its non-accountable expenses in the amount of $25,000,