Mustang Bio sets terms for $8M public offering

WORCESTER, Mass. - Mustang Bio , Inc. (NASDAQ:MBIO), a biopharmaceutical company engaged in the development of cell therapies for cancer treatment, has announced the pricing of a public offering expected to raise approximately $8 million. The offering includes over 2.6 million shares of common stock, alongside Series C-1 and C-2 warrants to purchase additional shares, with the entire package priced at $3.01 each. The company’s parent, Fortress Biotech (NASDAQ:FBIO), currently valued at $51.62 million, shows a FAIR financial health score according to InvestingPro analysis.

The warrants can be exercised at the same price per share, with the Series C-1 expiring five years post-stockholder approval and the Series C-2 expiring after twenty-four months. The offering’s closing is anticipated on or about February 7, 2025, subject to customary closing conditions.

H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. The funds raised, before deducting the placement agent’s fees and other offering expenses, are intended for working capital and general corporate purposes.

The offering is made under a registration statement declared effective by the Securities and Exchange Commission on February 5, 2025. The securities are being offered via a prospectus, a preliminary version of which has been filed with the SEC.

Mustang Bio specializes in acquiring technologies for cell therapies and advancing their development, often in partnership with top medical institutions. The company is a subsidiary of Fortress Biotech, Inc. (NASDAQ:FBIO).

The press release contains forward-looking statements regarding the offering’s completion, use of proceeds, and stockholder approval. However, it also acknowledges risks and uncertainties that could impact the company’s clinical trials, business operations, and market price of its common stock.

This article is based on a press release statement from Mustang Bio, Inc.

In other recent news, Fortress Biotech and its subsidiary Helocyte have initiated a Phase 2 clinical trial for their cytomegalovirus (CMV) vaccine, Triplex, in stem cell donors. The trial, funded by the National Cancer Institute, aims to reduce CMV complications in patients receiving hematopoietic stem cell transplantation. Concurrently, the U.S. Food and Drug Administration has extended the review of Fortress Biotech’s CUTX-101 drug, developed for treating patients with Menkes disease, to September 30, 2025.

In addition, Mustang Bio, a clinical-stage biopharmaceutical company and a subsidiary of Fortress Biotech, has announced a 1-for-50 reverse stock split of its common stock. This strategic move aims to comply with Nasdaq’s minimum bid price requirement.

Furthermore, Fortress Biotech’s majority-owned subsidiary, Cyprium Therapeutics, has had its New Drug Application for CUTX-101 accepted by the FDA. The application has been granted priority review status with a target action date set for June 30, 2025. These are the latest developments in the ongoing endeavors of Fortress Biotech and its subsidiaries.

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