Mustang Bio gets a second 180-day Nasdaq grace period to fix its bid price

Mustang Bio, Inc. (MBIO) received a letter from Nasdaq staff on October 13, 2026 granting it an additional 180-calendar day period, until April 12, 2027, to regain compliance with the minimum bid price rule, according to a Form 8-K signed on October 15, 2026. The company did not meet the rule by its first deadline, and the 8-K does not give a current closing bid price.

The second grace period

Nasdaq Listing Rule 5550(a)(2) requires a listed share to close at or above $1.00. The bid price fell below that level, and on April 15, 2026 the Nasdaq staff sent a notice after the stock closed below $1.00 for 30 consecutive business days. The initial 180-calendar day grace period ended on October 12, 2026, and Mustang said it could not show compliance by then.

The second period was granted on Mustang's request. The company said it believed that, as of October 12, 2026, it met the market value of publicly held shares requirement and the other initial listing standards for the Nasdaq Capital Market, apart from the bid price. It also told Nasdaq in writing that it intends to cure the deficiency by effecting a reverse stock split, if necessary.

To regain compliance, Mustang must show a closing bid price of at least $1.00 for a minimum of 10 consecutive business days, generally not more than 20, during the new period. If it does not, the Nasdaq staff will notify the company that its common stock will be delisted. Mustang could then appeal to the Nasdaq Hearings Panel, but the 8-K says an appeal would not pause any suspension of trading. The company says it intends to monitor the closing bid price closely and take all reasonable measures, including a reverse split, to remain listed. It adds that there can be no assurance it will regain compliance with all continued listing requirements.

Losses and cash

Mustang reported a net loss of $1.9 million for 2025, compared with $15.8 million for 2024. Cash used in operations was $5.3 million in 2025 and $11.4 million in 2024. Year-end 2025 cash and cash equivalents were $17.3 million, and cash and cash equivalents were $15.2 million at June 30, 2026, according to its quarterly report filed August 5, 2026. Its annual report filed March 19, 2026 gives an accumulated deficit of $398.6 million as of December 31, 2025. The company is a majority-controlled subsidiary of Fortress Biotech, Inc.

Programs and what comes next

Mustang describes itself as a clinical-stage biopharmaceutical company focused on novel therapies for solid tumors. The pipeline is being developed under exclusive licenses from two research institutions: City of Hope, partner on MB-101, a CAR T therapy targeting IL13Rα2, and Nationwide Children's Hospital, partner on MB-108, an HSV-1 oncolytic virus. In October 2023 the FDA accepted the investigational new drug application for the combination, MB-109, for patients with relapsed or refractory glioblastoma and high-grade astrocytoma, and the company describes it as a Phase 1, open-label, non-randomized, multicenter study. The FDA granted orphan drug designation to MB-108 on November 7, 2024 and to MB-101 on July 7, 2025.

After the Worcester cell processing facility lease was terminated, Mustang said it was exploring with City of Hope and Nationwide an investigator-sponsored single-institution trial of MB-109, which could start in the second quarter of 2026. The 8-K does not say whether that trial has started. The 10-K also says the company expects significant operating losses for the foreseeable future and may never become profitable.

Manuel Litchman, M.D., president, chief executive officer and interim chief financial officer, signed the 8-K.

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