Dallas, Texas 03/25/2014 (FINANCIALSTRENDS) – Oncolytics Biotech, Inc (NASDAQ:ONCY) announced that it has now entered into a share- purchase agreement with the Lincoln Park Capital Fund, LLC that will now provide the initial investment in Oncolytics of US$1.0M and make available the additional periodic-investments of upto US$25.0M over the 30-month term. Upon execution of this Purchase Agreement , Oncolytics Biotech, Inc (NASDAQ:ONCY) received the investment of US$1.0M in exchange for issuance of the 600,962 common-shares to LPC at the per-share purchase price of US$1.664. Apart from this, subject to terms & conditions of this Purchase Agreement, Oncolytics Biotech, Inc (NASDAQ:ONCY), at its sole discretion, might sell upto US$25.0 M worth of its common- shares to the LPC over its 30-month term.
This purchase price of its common shares will now be based on the prevailing market-prices of Oncolytics Biotech, Inc (NASDAQ:ONCY)’s common shares that will be immediately preceding this notice of the sale without any kind of fixed discount. Subject to its Purchase Agreement, Oncolytics Biotech, Inc (NASDAQ:ONCY) controls the timing & the amount of any future investment & LPC is now obligated to make this purchases, if & when its elects. The Purchase- Agreement does not actually impose any other upper-price limit restrictions, negative- covenants or any restrictions on its future-financing activities.
Oncolytics Biotech, Inc (NASDAQ:ONCY) can also terminate this Purchase Agreement at any given time at the sole discretion without any kind of monetary cost/ penalty. Oncolytics will issue a commitment-fee in its common shares to LPC in relation with the Purchase-Agreement & on a pro-rata basis as the US$26,000,000 is funded by LPC. LPC has also agreed not to cause, or engage in any other manner whatsoever in, any kind of direct/ indirect short-selling/ hedging of Oncolytics Biotech, Inc (NASDAQ:ONCY)’s common shares. President& Chief Executive Officer of the company, Dr. Brad Thompson said that they are pleased that they have entered into the share-purchase agreement with the Lincoln Park Capital.