Canadian drug developer Oncolytics Biotech Inc. said Monday it raised $12.8 million through a sale of stock and options.
Oncolytics said a group of underwriters bought a total of 4.25 million units. Each unit is made up of one Oncolytics share, and a warrant to buy another 0.4 shares. The units were sold for $3 each, and the underwriters will have the option to buy the shares for $3.50 per share at any time over the next five years.
The funds will be used to pay for a late stage trial of Oncolytics' cancer drug candidate Reolysin, and for other research and development and corporate purposes.
In afternoon trading, Oncolytics shares rose 14 cents, or 5.2 percent, to $2.84.