Mustang Bio (MBIO) to Cut 81% Staff

On April 10, 2024, the board of directors of Mustang Bio (NASDAQ: MBIO) approved a reduction of its workforce by approximately 81% of its employee base in order to reduce costs and preserve capital due to the fundraising environment and continued uncertainty regarding the U.S. Committee on Foreign Investment in the United States (“CFIUS”) review of the sale of the Company’s leasehold interest in its cell processing facility located in Worcester, Massachusetts (the “Facility”) and associated assets relating to the manufacturing and production of cell and gene therapies at the Facility (the “Transaction”) to uBriGene (Boston) Biosciences, Inc., a Delaware corporation (“uBriGene”) and an indirect, wholly owned subsidiary of UBriGene (Jiangsu) Biosciences Co., Ltd., a Chinese contract development and manufacturing organization.

The workforce reduction will take place primarily in April 2024 and is expected to be substantially completed in the second quarter of 2024. As a result of these actions, Mustang expects to incur personnel-related restructuring charges of approximately $0.2 million in connection with one-time employee termination cash expenditures, which are expected to be incurred in the second quarter of 2024. Mustang may also incur other charges or cash expenditures not currently contemplated due to events that may occur as a result of, or associated with, the workforce reduction or retention efforts. The estimates of the Mustang costs expected to be incurred, and the timing thereof, are subject to various assumptions and actual costs may differ.

The Company and its board of directors continue to evaluate all strategic and other alternatives related to the business.

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