Mustang Bio Faces Nasdaq Delisting Warning

TL;DR

Nasdaq says Mustang Bio's stock is too cheap, giving them 6 months to fix it or get kicked off.

AI Summary

Mustang Bio, Inc. announced on May 16, 2024, that it received a deficiency letter from the Nasdaq Stock Market indicating it is not in compliance with the minimum bid price requirement for continued listing. The company has 180 calendar days, until November 12, 2024, to regain compliance by increasing its bid price to at least $1.00 per share.

Why It Matters

This filing signals potential delisting from Nasdaq, which could significantly impact the company's stock liquidity and investor confidence.

Risk Assessment

Risk Level: high — The company is at risk of being delisted from Nasdaq if it cannot meet the minimum bid price requirement within the specified timeframe.

Key Numbers

• 180 days — Compliance Period (Timeframe to increase bid price)
• $1.00 — Minimum Bid Price (Requirement for continued listing on Nasdaq)

Key Players & Entities

• Mustang Bio, Inc. (company) — Registrant
• Nasdaq Stock Market (company) — Listing Exchange
• May 16, 2024 (date) — Date of deficiency letter
• November 12, 2024 (date) — Deadline to regain compliance
• $1.00 (dollar_amount) — Minimum bid price requirement

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share MBIO Nasdaq Capital Marke
• $1.00 — hare ("Common Stock"), had closed below $1.00 per share for 31 consecutive business d
• $2.5 million — was not in compliance with the minimum $2.5 million stockholders' equity requirement nor th

Filing Documents

• tmb-20240516x8k.htm (8-K) — 41KB
• 0001558370-24-008535.txt ( ) — 157KB
• tmb-20240516.xsd (EX-101.SCH) — 3KB
• tmb-20240516_lab.xml (EX-101.LAB) — 15KB
• tmb-20240516_pre.xml (EX-101.PRE) — 10KB
• tmb-20240516x8k_htm.xml (XML) — 5KB

01 Notice of Delisting of Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01 Notice of Delisting of Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On May 16, 2024, Mustang Bio, Inc. (the "Company") received a notice (the "Second Letter") from the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the bid price of the Company's common stock, par value $0.0001 per share ("Common Stock"), had closed below $1.00 per share for 31 consecutive business days and, as a result, the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2), which sets forth the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The Second Letter from Nasdaq has no immediate effect on the listing of the Company's Common Stock on Nasdaq. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company was afforded a 180-calendar day grace period, or until November 12, 2024, to regain compliance with the bid price requirement. Compliance can be achieved by evidencing a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days (but generally not more than 20 consecutive business days) during the 180-calendar day grace period. If the Company does not regain compliance with the bid price requirement by November 12, 2024, the Company may be eligible for an additional 180-calendar day compliance period so long as it satisfies the criteria for initial listing on The Nasdaq Stock Market and the continued listing requirement for market value of publicly held shares and the Company provides written notice to Nasdaq of its intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. In the event the Company is not eligible for the second grace period, Nasdaq staff will provide written notice that the Company's Common Stock is subject to delisting; however, the Company may request a hearing before the Nasdaq Hearings Panel (the "Panel"), which request, if timely

01 Other Events

Item 8.01 Other Events As previously disclosed, on March 13, 2024, the Company received a notice (the "First Letter") from the Staff of Nasdaq notifying the Company that it was not in compliance with the minimum $2.5 million stockholders' equity requirement nor the alternative quantitative standards for continued listing on the Nasdaq Capital Market as set forth under Nasdaq Listing Rule 5550(b)(1). The First Letter had no immediate effect on the Company's continued listing on Nasdaq. In accordance with Nasdaq Listing Rule 5550(b)(1), the Company was provided 45 calendar days, or until April 29, 2024, to submit a plan to regain compliance (the "Compliance Plan"). The Company thereafter submitted its Compliance Plan and, on May 16, 2024, the Staff granted the Company's request for an extension through September 9, 2024 to regain compliance with the minimum stockholders' equity requirement. The Company intends to take all reasonable measures available to regain compliance under the Nasdaq Listing Rules and remain listed on Nasdaq. However, there can be no assurance that the Company will ultimately regain compliance with all applicable requirements for continued listing.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K 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 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. Actual events or results may differ materially from those described in this Current Report on Form 8-K due to a number of risks and uncertainties. Risks and uncertainties include, among other things, the development stage of the Company's primary product candidates, the Company's 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/or continuing clinical trials; uncertainties relating to preclinical and clinical testing; the Company's increased dependence on third-party suppliers; the Company's ability to attract, integrate and retain key personnel; the early stage of products under development; the Company's need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in Part I, Item 1A, "Risk Factors," in the Company's most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, and the other filings the Company makes with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by applicable law, and the Company claims the

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Mustang Bio, Inc. Date: May 21, 2024 By: /s/ Manuel Litchman, M.D. Manuel Litchman, M.D. President and Chief Executive Officer

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View this 8-K filing on SEC EDGAR