Company: MBIO
Filing Date: 2025-01-10
Form Type: PRE 14C
Source: 0001104659-25-002602
Chunk: 7

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-10
Form: PRE 14C
Chunk 7
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 20% threshold is determined based on the number of shares of our common stock outstanding immediately
preceding the issuance of the Warrants in the Offerings.

Prior to the execution of
the Agreements, we had 41,060,312 shares of common stock issued and outstanding on October 24, 2024. Therefore, the potential issuance
of 34,767,934 Warrant Shares will constitute greater than 20% of the shares of common stock outstanding immediately prior to the execution
of the Agreements.

Additionally, under the terms
of the Agreements, we agreed to seek approval as may be required by the applicable rules and regulations of the Nasdaq Stock Market LLC
(or any successor entity) from the stockholders of the Company with respect to the issuance of the Warrant Shares upon the exercise of
the Warrants.

Approval of the Issuance of the Warrant Shares

We obtained stockholder approval
from the Majority Holders by Written Consent to comply with Nasdaq Listing Rule 5635(d) for the sale, issuance or potential issuance
by us of shares of our common stock (or securities exercisable for our common stock) in excess of 20% of the shares of common stock outstanding
immediately prior to the execution of the Agreements.

We cannot predict whether
or when the Holders will exercise their Warrants. For these reasons, we are unable to accurately forecast or predict with any certainty
the total amount of Warrant Shares that may ultimately be issued. Under certain circumstances, however, it is possible, that we will
issue more than 20% of our outstanding shares of common stock to the Holders. Therefore, we sought stockholder approval from the Majority
Holders to issue more than 20% of our outstanding shares of common stock, if necessary, to the Holders.

Any transaction requiring
approval by our stockholders under Nasdaq Listing Rule 5635(d) would likely result in a significant increase in the number of shares
of our common stock outstanding, and, as a result, our current stockholders will own a smaller percentage of our outstanding shares of
common stock.

Further Information

The terms of the Agreements
and Warrants are only briefly summarized above. For further information, please refer to the full text of the Inducement Letter, form
of Series B-1 and B-2 Warrant, and form of Placement Agent Warrant, copies of which were filed with the SEC as exhibits to our Current
Reports on Form