Mustang Bio completes $75 million debt financing with Runway Growth Capital
WORCESTER, Mass., March 08, 2022 (GLOBE NEWSWIRE) — Mustang Bio, Inc., (“Mustang”) (NASDAQ:MBIO), a clinical-stage biopharmaceutical company focused on translating current medical breakthroughs into therapeutics genes into potential cures for blood cancers, solid tumors and rare genetic diseases, today announced that it has entered into a $75 million long-term credit facility with Runway Growth Capital LLC (“Runway” ), a leading provider of growth loans to both venture capital and corporate venture capital looking for an alternative to raising equity.
“This funding provides us with increased financial flexibility as we continue to develop our gene and cell therapies at our fully integrated cell processing facility in Worcester, Massachusetts, which has the capacity to scale to commercial scale. We plan to initiate two Mustang-sponsored multi-center pivotal clinical trials and one Mustang-sponsored Phase 1/2 multi-center clinical trial in 2022,” said Manuel Litchman, MD, President and Chief Executive Officer of Mustang. “Partnering with Runway, a leading provider of growth loans with a long history of supporting innovative life science companies, strengthens our cash position and supports Mustang’s growth trajectory while continuing our mission to bring potentially life-saving treatments to patients in need.”
Igor DaCruz, Managing Director of Life Sciences at Runway, said, “We are delighted to partner with Mustang in providing capital to potentially help accelerate the development of Mustang’s strong portfolio of cell and gene therapies targeting cancers and rare diseases.
Thirty million of the $75 million loan was funded at closing. The additional $45 million available under the facility could be funded when Mustang reaches certain predetermined milestones. The loan will be repaid in 60 monthly installments consisting of 24 monthly installments of interest only, followed by 36 monthly installments of principal and accrued interest, and will be payable monthly in arrears, with all repayments ending on the same date as the initial installment. The interest only period can be extended to 36 months subject to Mustang reaching certain milestones. As part of the debt financing, Mustang issued Runway warrants to purchase up to 748,036 of its common shares at an exercise price of $0.8021 per share. Proceeds from the facility will be used to support ongoing clinical development of key investigational product candidates in Mustang’s pipeline and for general working capital purposes.
Cantor Fitzgerald acted as Mustang’s sole placement agent on this transaction.
About Mustang Bio
Mustang Bio, Inc. is a clinical-stage biopharmaceutical company focused on translating current medical breakthroughs in cell and gene therapies into potential treatments for hematological cancers, solid tumors and rare genetic diseases. Mustang aims to acquire the rights to these technologies by licensing or otherwise acquiring an equity interest, fund research and development, and license or bring the technologies to market. Mustang has partnered with leading medical institutions to advance the development of CAR T therapies for multiple cancers, as well as lentiviral gene therapies for severe combined immunodeficiency. Mustang is registered under the Securities Exchange Act of 1934, as amended, and files periodic reports with the United States Securities and Exchange Commission (“SEC”). Mustang was founded by Fortress Biotech, Inc. (NASDAQ: FBIO). For more information, visit www.mustangbio.com.
About Runway Growth Capital LLC
Runway Growth Capital LLC is the investment advisor to investment funds, including Runway Growth Finance Corp. (NASDAQ: RWAY), a business development company, and other private funds, which are lenders of growth capital to companies seeking an alternative to raising equity. Led by industry veteran David Spreng, these funds offer senior term loans of $10 million to $75 million to fast-growing companies based in the United States and Canada. For more information about Runway Growth Capital LLC and its platform, please visit our website at www.runwaygrowth.com.
This press release may contain “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 include, but are not limited to, all statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, financial condition and stock value. Factors that could cause actual results to differ materially from those currently anticipated include: risks relating to our growth strategy; our ability to obtain, execute and maintain financing and strategic agreements and relationships; risks related to the results of research and development activities; risks relating to the timing of the start and completion of clinical trials; uncertainties related to preclinical and clinical trials; our reliance on third-party vendors; our ability to attract, integrate and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patents and intellectual property; competetion; and other risks described in our filings with the SEC. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except if required by law, and we claim safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
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Jaclyn Jaffe and Bill Begien
Mustang Bio, Inc.
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