Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 219

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 219
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 the Company had an accumulated deficit
on the exercise date. The deemed dividend was included in the net loss attributable to Class A common and common stockholders in the calculation
of net loss per share in the Statements of Operations (see Note 2). The resale of the underlying shares of common stock were subsequently registered in November 2024 on Form S-3 (File No. 333-283420). In connection with these offerings, Wainwright received Placement Agent Warrants to purchase up to 20,251 shares of common stock.

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Table of Contents

The key inputs used for the Black-Scholes Model calculation on October 25, 2024, to measure the fair value of the New Warrants, were as follows:

| ​                       | ​ |              ​ | ​ | ​ |              ​ | ​ |
| ​                       | ​ | New Series B-1 |   | ​ | New Series B-2 |   |
| ​                       | ​ |       Warrants |   | ​ |       Warrants |   |
| Stock Price             | ​ |          14.50 | ​ | ​ |          14.50 | ​ |
| Risk-free interest rate | ​ |            4.1 | % | ​ |            4.3 | % |
| Expected dividend yield | ​ |              — | ​ | ​ |              — | ​ |
| Expected term in years  | ​ |              5 | ​ | ​ |              1 | ​ |
| Expected volatility     | ​ |          122.2 | % | ​ |          213.2 | % |

As of December 31, 2024, all of the pre-funded warrants have been exercised.

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Equity Incentive Plan

The Company has in effect the 2016 Incentive Plan
(the “Incentive Plan”). The Incentive Plan was adopted in 2016 by our stockholders and the compensation committee of the Company’s
board of directors and is authorized to grant stock-based awards to directors, officers, employees and consultants. The plan initially
authorized grants to issue up to 2,666 shares of authorized but unissued common stock and expires 10 years from adoption and limits the
term of each option to no more than 10 years from the date of grant.

In June 2018, the Company’s stockholders
approved an amendment to the Incentive Plan to increase the number of authorized shares iss