November 24, 2009 (FinancialWire) — Oncolytics Biotech Inc. (NASDAQ: ONCY) has closed a $12.75 million offering in which a syndicate of underwriters purchased 4,250,000 units of the company, each unit comprised of one common share and 0.4 of a common share purchase warrant, at a price of $3.00 per unit.

Each whole common share purchase warrant entitles the holder to acquire one common share of Oncolytics upon payment of $3.50 for a five year period commencing on the closing date of the offering, subject to an acceleration of the expiry date in certain circumstances. Oppenheimer & Co. Inc. acted as the sole book-running manager for the offering.

The company has granted the underwriters an over-allotment option to purchase additional common shares and/or warrants in an amount up to 15% of the number of common shares and warrants underlying the units sold pursuant to the offering at the same price as in the offering, exercisable at any time up to 30 days from the closing of the offering.

Oncolytics plans to use the net proceeds from the offering to fund a Phase III combination Reolsin 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.

Canada-based Oncolytics is a 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 Reolsin, its proprietary formulation of the human reovirus.

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