Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 197

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 197
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minated Clinical Trial and Sponsored Research Agreements

In May 2023, the Company determined to discontinue
development of certain programs, including CS1 (MB-104) and PSCA (MB-105), and terminated the associated CRA and license with COH. In
April 2024, the Company terminated its license agreement and the associated Data Transfer Agreement with St. Jude, in exchange for a mutual
release of liability and forgiveness by St. Jude of all amounts previously owed by the Company, which totaled approximately $0.6 million.
Additionally, in April 2024, the Company delivered a termination notice to LUMC, pursuant to which it terminated the license agreement
underpinning the MB-110 product candidate; the Company is currently in discussions with LUMC regarding the terms that will govern such
termination In June 2024, the Company terminated its license agreement and associated SRA with the Mayo Clinic, in exchange for a mutual
release of liability and forgiveness by Mayo Clinic of all amounts previously owed by the Company, which totaled approximately $0.3 million.
The forgiven amounts, totaling approximately $0.9 million, were recognized as a reduction of research and development expenses in the
Statements of Operations.

Note 4 - Related Party Agreements

Founders Agreement and Management Services Agreement with
Fortress

Effective March 13, 2015, the Company entered
a Founders Agreement with Fortress, which was amended and restated on May 17, 2016, and again on July 26, 2016 (the “Mustang
Founders Agreement”). The Mustang Founders Agreement provides that, in exchange for the time and capital expended in the formation
of Mustang and the identification of specific assets the acquisition of which result in the formation of a viable emerging growth life
science company, Fortress loaned $2.0 million, representing the up-front fee required to acquire the Company’s license agreement
with COH. The Mustang Founders Agreement has a term of 15 years, which upon expiration automatically renews for successive one-year periods
unless terminated by Fortress and the Company or a Change in Control (as defined in the Mustang Founders Agreement) occurs. Concurrently
with the second amendment on July 26, 2016, to the Mustang Founders Agreement, Fortress entered into an Exchange Agreement whereby
Fortress exchanged its 7.25 million Class B Common shares for 9,333 common shares and 250,000 Class A Preferred shares. Class A