Company: MBIO
Filing Date: 2025-03-03
Form Type: DEF 14C
Source: 0001104659-25-019831
Chunk: 5

Company: MUSTANG BIO, INC.
Filing Date: 2025-03-03
Form: DEF 14C
Chunk 5
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-2 Warrants”) to purchase up to an aggregate of
2,657,807 shares of common stock (the “Series C-2 Warrant Shares”). Pursuant to the Engagement Letter with the Placement Agent,
in connection with the Offering, the Company also issued warrants to the Placement Agent or its designees (the “Placement Agent
Warrants, and together with the Series C-1 Warrants and Series C-2 Warrants, the “Warrants”) to purchase up to an aggregate
of 159,468 shares of common stock (the “Placement Agent Warrant Shares,” and together with the Series C-1 Warrant Shares and
the Series C-2 Warrant Shares, the “Warrant Shares”).

The
Series C-1 Warrants and Series C-2 Warrants have an exercise price of $3.01 per share and will become exercisable upon the effective date
of approval of the Warrant Share Issuance (the “Warrant Stockholder Approval”). The Series C-1 Warrants will expire five years
from the Warrant Stockholder Approval and the Series C-2 Warrants will expire twenty-four months from the Warrant Stockholder Approval.
The Placement Agent Warrants will become exercisable upon the Warrant Stockholder Approval, have an exercise price of $3.7625, and will
terminate on the five-year anniversary of commencement of sales in the Offering.

The closing of the transactions
contemplated pursuant to the Purchase Agreement occurred on February 10, 2025. The Company received net proceeds of approximately $6.9
million from the Offering, after deducting the fees and expenses of the Placement Agent and other offering expenses payable by the Company.
The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.

The Company engaged the Placement
Agent to act as its exclusive placement agent in connection with the Offering and paid the Placement Agent (i) a cash fee equal to 7.0%
of the aggregate gross proceeds raised in the Offering, (ii) a management fee equal to 1.0% of the aggregate gross proceeds raised in
the Offering, (iii) up to $100,000 for fees and expenses of the Placement Agent’s counsel and other out of pocket expenses, (iv)
a non-accountable expense allowance of $25,000, (v) up to $3,500 for road show expenses, and (vi) $15,950 for the clearing expenses.

The
Series C