Mustang Bio Receives Positive Listing Determination from Nasdaq

Rhea-AI Summary

Mustang Bio (MBIO) has received a positive determination from the Nasdaq Hearings Panel, granting an extension to meet continued listing requirements. The company must achieve a $1.00 minimum bid price by January 31, 2025, and demonstrate $2.5 million stockholders' equity by February 18, 2025. While exploring options to maintain its Nasdaq listing, the company acknowledges there's no guarantee of meeting these requirements within the extended timeframe.

Positive

• Received extension from Nasdaq for continued listing compliance
• Additional time granted until January/February 2025 to meet requirements

Negative

• Risk of potential delisting if $1.00 minimum bid price not met by January 31, 2025
• Must demonstrate $2.5M stockholders' equity by February 18, 2025
• Company uncertain about ability to meet compliance requirements

Insights

Financial Analyst

The Nasdaq extension for compliance represents a critical lifeline for Mustang Bio, but comes with significant challenges given their micro-cap status ($9.3M market cap) and current financial position. The company must address both the $1.00 minimum bid price and $2.5M stockholders' equity requirements by early 2025. This typically requires either a reverse stock split or significant capital raising, both of which could lead to further dilution for existing shareholders. The tight deadline and company's small market cap suggest substantial execution risk in meeting these requirements.

WORCESTER, Mass., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Mustang Bio, Inc. (“Mustang” or the “Company”) (Nasdaq: MBIO), a clinical-stage biopharmaceutical company focused on translating today’s medical breakthroughs in cell therapies into potential cures for difficult-to-treat cancers, today announced that by decision dated November 8, 2024, the Nasdaq Hearings Panel granted the Company’s request for an extension to evidence compliance with all applicable criteria for continued listing on The Nasdaq Capital Market, including the $1.00 bid price requirement through January 31, 2025 and the $2.5 million stockholders’ equity requirement through February 18, 2025. The Company is considering all available options that may enable it to timely evidence compliance with the continued listing criteria and maintain its listing on Nasdaq; however, there can be no assurance that the Company will be able to do so.

About Mustang Bio
Mustang Bio, Inc. is a clinical-stage biopharmaceutical company focused on translating today’s medical breakthroughs in cell therapies into potential cures for difficult-to-treat cancers. Mustang aims to acquire rights to these technologies by licensing or otherwise acquiring an ownership interest, to fund research and development, and to outlicense or bring the technologies to market. Mustang has partnered with top medical institutions to advance the development of CAR-T therapies. Mustang’s common stock is registered under the Securities Exchange Act of 1934, as amended, and Mustang files periodic reports with the U.S. Securities and Exchange Commission (“SEC”). Mustang was founded by Fortress Biotech, Inc. (Nasdaq: FBIO). For more information, visit www.mustangbio.com.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Such statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “look forward to,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions. The Company’s forward-looking statements, include, but are not limited to, any statements relating to our growth strategy and product development programs, including the timing of and our ability to make regulatory filings such as INDs and other applications and to obtain regulatory approvals for our product candidates, statements concerning the potential of therapies and product candidates and any other statements that are not historical facts. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. Risks and uncertainties include, among other things, our need for substantial additional funds in the immediate future, risks that any actual or potential clinical trials described herein may not initiate or complete in sufficient timeframes to advance the Company’s corporate objectives, or at all, or that promising early results obtained therefrom may not be replicable, risks related to the satisfaction of the conditions necessary to transfer the lease of the Company’s manufacturing facility to a potential transferee and receive the contingent payment in connection with the sale of such facility in the anticipated timeframe or at all; whether the purchaser of the Company’s manufacturing facility is able to successfully perform its obligation to produce the Company’s products under the manufacturing services agreement on a timely basis and to acceptable standards; disruption from the sale of the Company’s manufacturing facility making it more difficult to maintain business and operational relationships; negative effects of the announcement or the consummation of the transaction on the market price of the Company’s common stock; significant transaction costs; the development stage of the Company’s primary product candidates, our ability to obtain, perform under, and maintain financing and strategic agreements and relationships; risks relating to the results of research and development activities; risks relating to the timing of starting and completing clinical trials; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate and retain key personnel; the early stage of products under development; government regulation; patent and intellectual property matters; competition; as well as other risks described in Part I, Item 1A, “Risk Factors,” in our Annual Report on Form 10-K filed on March 11, 2024, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Company Contacts:
Jaclyn Jaffe and Nicole McCloskey
Mustang Bio, Inc.
(781) 652-4500
ir@mustangbio.com

FAQ

What are the Nasdaq listing requirements Mustang Bio (MBIO) needs to meet?

Mustang Bio needs to maintain a minimum bid price of $1.00 by January 31, 2025, and demonstrate stockholders' equity of $2.5 million by February 18, 2025.

When does Mustang Bio's (MBIO) Nasdaq compliance extension expire?

The extension expires in two phases: January 31, 2025 for the $1.00 bid price requirement, and February 18, 2025 for the $2.5 million stockholders' equity requirement.

What happens if Mustang Bio (MBIO) fails to meet Nasdaq requirements by the deadline?

If Mustang Bio fails to meet the requirements by the deadlines, the company could face delisting from the Nasdaq Capital Market.