Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 175

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 175
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 business that is similar to that of our company. In consideration for the Services, we pay Fortress an annual consulting fee of $0.5
million (the “Annual Consulting Fee”), payable in advance in equal quarterly installments on the first business day of each
calendar quarter in each year, provided, however, that such Annual Consulting Fee shall be increased to $1.0 million for each calendar year
in which we have net assets in excess of $100 million at the beginning of the calendar year. We record fifty percent of the Annual
Consulting Fee in research and development expense and fifty percent in general and administrative expense in the Statement of Operations.
For the years ended December 31, 2024 and 2023, we recorded expense of $0.5 million and $0.5 million, respectively, related to this
agreement.

For the year ended December 31, 2024,
the Company issued 23,450 shares of common stock to Fortress, which equaled 2.5% of the sum of the gross proceeds of $2.6 million
from the sale of shares of common stock under Mustang’s At-the-Market Offering, $4.0 million gross proceeds from the May 2024 Public
Offering, $2.5 million from the June 2024 PIPE, and $4.0 million from the October 2024 warrant exercise. The Company recorded an expense
of approximately $0.3 million in general and administrative expenses related to these shares for the year ended December 31, 2024.

​

For the year ended December 31, 2023,
we issued zero shares of common stock and recorded 1,319 shares issuable to Fortress, which equaled 2.5% of the gross proceeds of $0.2
million from the sale of shares of common stock under our At-the-Market Offering and $4.4 million gross proceeds on the Registered Direct
Offering. We recorded an expense of approximately $0.1 million in general and administrative expenses related to these shares for the year
ended December 31, 2023.

Payables and Accrued Expenses Related Party

In the normal course of business Fortress pays
for certain expenses on behalf of the Company. Such expenses are recorded as payables and accrued expenses - related party.

Director Compensation

Dr. Rosenwald and David Jin

Pursuant to the terms of our Non-Employee Directors
Compensation Plan, Dr. Rosenwald and Mr. Jin will