06:28 AM EDT, 04/11/2025 (MT Newswires) -- Oncolytics Biotech ( ONCY ) , a clinical-stage company specializing in immunotherapy for oncology, was at last look up 1.5% from near 52 week low levels in U.S. pre-market trading on Friday after it signed a share purchase agreement (SPA) with Alumni Capital LP (Alumni), an institutional investor.

According to a statement released late on Thursday, the partnership provides Oncolytics with a "flexible source of funding, enabling it to progress pelareorep toward key clinical milestones and minimize dilution to create and sustain shareholder value". It said 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, the statement noted, Oncolytics has the right to sell, and Alumni has the obligation to purchase up to US$20 million 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 the company through the SPA have been conditionally approved for listing on the Toronto Stock Exchange, and the required notices related to the SPA have been filed with the Nasdaq.

No offers or sales of common shares will be made in Canada or through the facilities of the TSX or any other marketplace in Canada.

Oncolytics fell 5.4% to near 52 week lows on the TSX on Thursday.