Company: MBIO
Filing Date: 2025-01-10
Form Type: PRE 14C
Source: 0001104659-25-002602
Chunk: 6

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-10
Form: PRE 14C
Chunk 6
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iii) paid a management fee equal to 1.0% of the gross proceeds raised. The Company also issued to H.C. Wainwright or its designees
(“PA Warrant Holders”) placement agent warrants (the “Placement Agent Warrants”) to purchase up to 1,012,658
shares of common stock (the “Placement Agent Warrant Shares,” and, together with the New Series B-1 Warrant Shares and the
New Series B-2 Warrant Shares, the “New Warrant Shares”). The Placement Agent Warrants have the same terms as the New Series
B-1 Warrants, except that the Placement Agent Warrants have an exercise price equal to $0.2963 per share.

The Company filed a registration
statement on Form S-3 (File No. 333-283420) under the Securities Act providing for the resale of the New Warrant Shares (the “Resale
Registration Statement”) on November 22, 2024, which was declared effective by the SEC on November 27, 2024. The Company will use
best efforts to keep the Resale Registration Statement effective at all times until the Investor no longer owns any New Warrants or New
Warrant Shares.

Effect of the Issuance of the Warrant Shares

The potential issuance of
the Warrant Shares would result in a substantial and significant increase in the number of shares of our common stock outstanding, and
our stockholders will incur substantial dilution of their percentage ownership to the extent that the Holders of the Warrants exercise
their Warrants.

Reasons for Stockholder Approval of the Warrant ShareIssuance

Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval, prior to the issuance of securities, of a transaction other than a public offering involving the sale, issuance or potential issuance by us of shares of our common stock (or securities convertible into or exercisable for our common stock) in an amount equal to 20% or more of the Company’s outstanding common stock or voting power outstanding immediately before the issuance will be sold at a price less than (i) the Nasdaq Official Closing Price immediately preceding the signing of the binding agreement in connection with such transaction or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected onNasdaq.com) for the five trading days immediately preceding the signing of such binding agreement (the “Minimum Price”).
In the case of the Offerings, the