Mustang Bio Enters into Agreement with AbbVie for Premises Sale and Lease Renewal

On February 10, 2025, Mustang Bio, Inc. (NASDAQ:MBIO) disclosed the signing of a Bill of Sale and Surrender Agreement with AbbVie Bioresearch Center Inc., a Delaware Corporation. The agreement, effective as of January 31, 2025, involves the sale and conveyance of certain furniture, fixtures, and equipment located in the premises at 377 Plantation Street, Worcester, Massachusetts, for a sum of $1.0 million.

As part of this agreement, AbbVie has also agreed to lease the premises from the Landlord following the termination of the existing Lease Agreement. The inspection period, granting AbbVie the opportunity to inspect the premises and assets, will last for seven business days starting from the Anticipated Vacation Date. Depending on the condition of the items, the Purchase Price may be adjusted proportionally.

In connection with this transaction, a corresponding Escrow Agreement was established whereby Bowditch & Dewey, LLP acts as the Escrow Agent. The Purchase Price will be held in escrow until specified conditions are met, including the approval of both parties or the termination of the agreement.

In tandem with the Sale/Surrender Agreement, Mustang Bio also entered into a First Amendment to Lease Agreement with WCS – 377 Plantation Street, Inc., the Landlord. This Amendment facilitates the transfer of the premises lease to AbbVie, aligning with the premises’ surrender and ensuring proper Lease obligations are met.

The terms of the Amendment outline the early termination conditions of the Lease, potentially leading to estimated savings of around $2.0 million in Lease-related payments and obligations for Mustang Bio. Should the early termination occur, the Company’s obligations under the Lease, excluding outstanding amounts, will cease.

Investors are advised to be cautious when analyzing forward-looking statements within this disclosure, as these statements are subject to uncertainties and risks that could materially affect actual outcomes. Mustang Bio will not hesitate to update any future events or developments pertinent to this agreement.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mustang Bio’s 8K filing here.

About Mustang Bio

Mustang Bio, Inc, a clinical-stage biopharmaceutical company, focuses on translating medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors, and rare genetic diseases. Its pipeline focuses on gene therapy programs for rare genetic disorders, chimeric antigen receptor (CAR) engineered T cell (CAR T) therapies for hematologic malignancies, and CAR T therapies for solid tumors.