Oncolytics arranges $15-million bought-deal offeri Oncolytics arranges $15-million bought-deal offering
Oncolytics Biotech Inc (C:ONC)
Shares Issued 71,251,335
Last Close 1/20/2012 $4.52
Monday January 23 2012 - News Release
Mr. Doug Ball reports
ONCOLYTICS BIOTEC INC. ANNOUNCES CDN$15 MILLION BOUGHT DEAL FINANCING
Oncolytics Biotech Inc. has entered into an agreement with a syndicate of underwriters pursuant to which they have agreed to purchase, on a bought-deal basis, 3,572,000 common shares of the company at a price of $4.20 per share for gross proceeds to the company of approximately $15,002,400. The Offering will be conducted through a syndicate of underwriters led by Paradigm Capital Inc., and including Canaccord Genuity Corp., RBC Capital Markets, Bloom Burton & Co. Inc., and Byron Capital Markets Ltd., (collectively the "Underwriters"). 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$17,252,760.
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.
We seek Safe Harbor.
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