Oncolytics Biotech Inc (NASDAQ:ONCY) (TSX:ONC), a Canada-based clinical-stage company specialising in immunotherapy for oncology, announced on Thursday that it has signed a share purchase agreement (SPA) with institutional investor Alumni Capital LP.

The partnership is intended to provide Oncolytics with a flexible source of funding and enable the company to progress pelareorep toward key clinical milestones, while minimising dilution to create and sustain shareholder value. The SPA allows Oncolytics to be judicious and plan for the timing and amount of any equity sales, which will be critical as pelareorep's development continues.

Under the terms of the agreement, Oncolytics has the right to sell, and Alumni has the obligation to purchase, up to USD20m worth of common stock over a 15-month period at prices that are based on the market price at the time of each sale to Alumni. Oncolytics, at its sole discretion, controls the timing and amount of all sales of common stock, and there are no warrants, derivatives or other share classes associated with the SPA. In relation to the execution of the SPA, Oncolytics issued to Alumni 816,326 commitment shares and may issue to Alumni an additional 816,326 commitment shares pro rata upon the delivery of purchase notices under the SPA.

The common shares that may be issued by Oncolytics through the SPA have been conditionally approved for listing on the Toronto Stock Exchange (TSX), and the required notices related to the SPA have been filed with the Nasdaq. In obtaining TSX listing approval, Oncolytics has relied on the 'Eligible Interlisted Issuer' exemption from TSX rules under section 602.1 of the TSX Company Manual.