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Oncolytics Biotech® Inc. Announces
Increase in Size of Bought Deal
Financing to Cdn$18.5 Million
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CALGARY, AB - January 24, 2012 -
Oncolytics Biotech Inc. ("Oncolytics"
or the "Company") (TSX:ONC,
NASDAQ:ONCY) today announced an
increase in the size of the bought deal
financing announced on January 23, 2012
from $15,002,400 to $18,501,000. The
Company has entered into a revised
agreement with a syndicate of
underwriters (the "Underwriters")
pursuant to which they have agreed to
purchase, on a bought deal basis,
4,405,000 common shares (the
"Shares") of the Company at a
price of Cdn$4.20 per Share for gross
proceeds to the Company of
approximately Cdn$18,501,000 (the
"Offering"). In addition, the
Corporation has agreed to grant to the
Underwriters an option (the
"Over-Allotment Option") to purchase up
to an additional 15% of the number of
Shares sold under the Offering at a
price of Cdn$4.20 per share, on the
same terms and conditions as the
Offering, exercisable at any time, in
whole or in part, until the date that
is 30 days following the closing of the
Offering. In the event that the
Over-Allotment Option is exercised in
its entirety, the aggregate gross
proceeds of the Offering to Oncolytics
will be approximately
Cdn$21,276,150.
The Shares will be offered in Canada by
way of a shelf prospectus supplement to
a short-form base shelf prospectus
dated June 10, 2010, that has been
filed in the provinces of British
Columbia, Alberta, Manitoba and Ontario
pursuant to National Instrument 44-101
and National Instrument 44-102 and in
the United States or to, or for the
account or benefit of, a "U.S. person"
(as defined in Regulation S under the
United States Securities Act of 1933,
as amended (the "U.S. Securities Act"))
on a private placement basis pursuant
to available exemptions from the
registration requirements of the U.S.
Securities Act and in compliance with
any applicable securities laws of any
state of the United States.
Oncolytics intends to use the net
proceeds from the Offering to fund its
ongoing Phase III combination REOLYSIN®
and paclitaxel/carboplatin trial for
patients with platinum-failed head and
neck cancers, its other clinical
development and research and
development activities, and for general
corporate and working capital
purposes.
The transaction is subject to the
receipt of all necessary regulatory and
stock exchange approvals. The
transaction is expected to close on or
about February 8, 2012.
The securities to be issued by
Oncolytics have not been and will not
be registered under the U.S. Securities
Act or the securities laws of any state
of the United States, and may not be
offered or sold in the United States or
to, or for the account or benefit of,
U.S. persons (as defined in Regulation
S under the U.S. Securities Act) unless
registered under the U.S. Securities
Act and applicable securities laws of
any state of the United States or
pursuant to an exemption from such
registration requirements. This press
release shall not constitute an offer
to sell or the solicitation of an offer
to buy in the United States nor shall
there be any sale of the securities in
any jurisdiction in which such offer,
solicitation or sale would be
unlawful.
About Oncolytics Biotech Inc.
Oncolytics is a Calgary-based
biotechnology company focused on the
development of oncolytic viruses as
potential cancer therapeutics.
Oncolytics' clinical program includes a
variety of human trials including a
Phase III trial in head and neck
cancers using REOLYSIN, its proprietary
formulation of the human reovirus.
This press release contains
forward-looking statements, within the
meaning of Section 21E of the
Securities Exchange Act of 1934, as
amended. Forward-looking statements,
including the Company's expectations
related to the pricing, timing and
placement of common shares; the
Company's belief as to the potential of
REOLYSIN as a cancer therapeutic; the
Company's expectations as to the
success of its research and development
programs in 2012 and beyond, the
Company's planned operations, the value
of the additional patents and
intellectual property; the Company's
expectations related to the
applications of the patented
technology; the Company's expectations
as to adequacy of its existing capital
resources; the design, timing, success
of planned clinical trial programs; and
other statements related to anticipated
developments in the Company's business
and technologies involve known and
unknown risks and uncertainties, which
could cause the Company's actual
results to differ materially from those
in the forward-looking statements. Such
risks and uncertainties include, among
others, the pricing and completion of
the contemplated offering, availability
of funds and resources to pursue
research and development projects, the
efficacy of REOLYSIN as a cancer
treatment, the success and timely
completion of clinical studies and
trials, the Company's ability to
successfully commercialize REOLYSIN,
uncertainties related to the research
and development of pharmaceuticals,
uncertainties related to the regulatory
process and general changes to the
economic environment. Investors should
consult the Company's quarterly and
annual filings with the Canadian and
U.S. securities commissions for
additional information on risks and
uncertainties relating to the
forward-looking statements. Investors
are cautioned against placing undue
reliance on forward-looking statements.
The Company does not undertake to
update these forward-looking
statements, except as required by
applicable laws.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Oncolytics Biotech
Doug Ball
210, 1167 Kensington Cr NW
Calgary, Alberta T2N 1X7
Tel: 403.670.7377
Fax: 403.283.0858
dball@oncolytics.ca
The Equicom Group
Nick Hurst
300 5th Ave. SW, 10th Floor
Calgary, Alberta T2P 3C4
Tel: 403.218.2835
Fax: 403.218.2830
nhurst@equicomgroup.com
The Investor Relations Group
Erika Moran
11 Stone St, 3rd Floor
New York, NY 10004
Tel: 212.825.3210
Fax: 212.825.3229
emoran@investorrelationsgroup.com
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