Mustang Bio Announces Inducement Offer Agreement, Raises $4 Million through Warrants Exercise

On October 24, 2024, Mustang Bio, Inc. (NASDAQ: MBIO) entered into an inducement offer letter agreement with an institutional investor regarding the exercise of certain outstanding Series A-3 warrants. These warrants were initially issued to the investor on May 2, 2024, allowing the purchase of up to 16,877,638 shares of Mustang Bio’s common stock at an exercise price of $0.237 per share.

As per the agreement, the investor exercised the existing warrants in full for cash, prompting Mustang Bio to issue new Series B-1 and B-2 common stock purchase warrants alongside the existing Series A-3 warrants. The completion of this transaction, which occurred on October 25, 2024, provided Mustang Bio with approximately $4 million in gross proceeds from the warrant exercises, before deducting certain fees and expenses.

To facilitate this deal, Mustang Bio engaged H.C. Wainwright & Co., LLC as its exclusive placement agent, compensating them with a cash fee equal to 7.0% of the aggregate gross proceeds from the exercise of the warrants. Additionally, the company reimbursed various expenses of H.C. Wainwright and also paid a management fee. The placement agent received warrants to purchase up to 1,012,658 shares of Mustang Bio’s common stock as part of this arrangement.

Notably, the shares underlying the existing warrants were registered under an existing registration statement on Form S-1, declared effective by the SEC on April 29, 2024. Following the exercise of the warrants, Mustang Bio has committed to filing a registration statement for the resale of the new warrant shares within 30 calendar days from the date of agreement.

Interested parties should be aware that Mustang Bio agreed to certain limitations post-transaction. This includes refraining from variable rate transactions and issuing additional shares or securities convertible into common stock, subject to specified exceptions.

The newly issued warrants feature an exercise price of $0.27 per share and are exercisable upon stockholder approval. Certain terms and conditions regarding the exercise, adjustment, and ownership limitations have been outlined, ensuring consistency with industry practices and regulatory requirements.

Moreover, on October 23, 2024, the Company announced a strategic change in its board composition by appointing David Jin as a new director. Mr. Jin brings a wealth of experience, having served in various senior roles within the biopharmaceutical sector, aligning with Mustang Bio’s growth objectives and progress trajectory.

Mustang Bio’s recent financial maneuvers emphasize the company’s commitment to fortifying its financial position, supporting operational activities, and advancing its product development pipeline. Investors and stakeholders await further updates on the company’s strategic direction and upcoming milestones.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mustang Bio’s 8K filing here.

Mustang Bio Company Profile

Mustang Bio, Inc, a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors.