Company: MBIO
Filing Date: 2025-01-22
Form Type: DEF 14C
Source: 0001104659-25-005251
Chunk: 7

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-22
Form: DEF 14C
Chunk 7
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 the Warrants exercise
their Warrants.

Reasons for Stockholder Approval of the Warrant ShareIssuance

Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval, prior to the issuance of securities, of a transaction other than a public offering involving the sale, issuance or potential issuance by us of shares of our common stock (or securities convertible into or exercisable for our common stock) in an amount equal to 20% or more of the Company’s outstanding common stock or voting power outstanding immediately before the issuance will be sold at a price less than (i) the Nasdaq Official Closing Price immediately preceding the signing of the binding agreement in connection with such transaction or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected onNasdaq.com) for the five trading days immediately preceding the signing of such binding agreement (the “Minimum Price”).
In the case of the Offerings, the 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