Oncolytics Biotech Inc. Announces Up to \$75 Million At-the-Market Offering Agreement with Jefferies LLC

San Diego, CA, April 6, 2026 – Oncolytics Biotech Inc. (NASDAQ: ONCY) has entered into a significant financing arrangement, announcing an Open Market Sale Agreement with Jefferies LLC, enabling the company to potentially raise up to \$75 million through the sale of its common stock. This strategic move is intended to provide the company with the financial flexibility to advance its clinical pipeline and support ongoing corporate operations.

Key Highlights of the Agreement

• Maximum Offering: The company may issue and sell, from time to time, shares of its common stock with an aggregate offering price of up to \$75 million through Jefferies LLC, acting as sales agent or principal.
• Purpose of Funds: Oncolytics Biotech intends to use the net proceeds from any sales under this agreement to fund the clinical development of pelareorep, support associated research and development expenses, cover operating costs, and provide working capital for general corporate purposes.
• Regulatory Compliance: The offering will be made pursuant to the company’s shelf registration statement on Form S-3, declared effective by the U.S. Securities and Exchange Commission (SEC) on April 3, 2026, and a related prospectus supplement filed on April 6, 2026.
• Customary Conditions: The agreement contains standard representations, warranties, and covenants, including indemnification obligations for both parties related to liabilities under the Securities Act.
• Legal Opinion: The legal opinion regarding the validity of the shares has been provided by Brownstein Hyatt Farber Schreck, LLP, and included in the company’s Form 8-K filing.

Potential Impacts for Shareholders

• Dilution Risk: The sale of up to \$75 million in common stock could result in dilution for existing shareholders, as the total number of outstanding shares may increase.
• Potential Share Price Volatility: At-the-market (ATM) offerings can affect share price performance, especially if large volumes of shares are sold in a short period or if the market perceives the raise as a sign of near-term capital needs.
• Use of Proceeds: Investors should note that the primary use of funds is for the clinical advancement of pelareorep, Oncolytics’ lead program. Positive progress or setbacks in this pipeline asset could have a direct impact on the company’s valuation and stock price.
• Regulatory/Market Risks: The company emphasizes that sales will only occur in compliance with all applicable securities laws and only in jurisdictions where permitted. Sales will not proceed if any stop order or suspension is imposed by regulators.
• Ongoing Disclosures: The company is committed to informing the market of the number of shares sold, net proceeds received, and material changes in its financial or operational position through regular filings and disclosures.

Additional Important Details

• No Obligation to Sell: The company is not obliged to sell the full amount under the agreement and may choose to suspend or terminate the offering at any time, subject to the terms of the Sales Agreement.
• Agent Role: Jefferies LLC is not required to purchase shares as a principal unless specifically agreed and is not guaranteeing any sales. There is no assurance that any shares will be sold or that Oncolytics will raise the maximum amount authorized.
• Forward-Looking Statements: The company notes that projections and statements regarding the use of proceeds, business development, and regulatory status are forward-looking and subject to risks and uncertainties.
• Financial Condition: There have been no material adverse changes in the company’s financial condition or operations since the last reporting period, except as disclosed in the registration statement and prospectus.
• Listing and Compliance: The company’s shares continue to be listed on the NASDAQ Capital Market under the symbol “ONCY,” and Oncolytics remains in compliance with all relevant corporate governance, reporting, and internal control standards, including Sarbanes-Oxley.

Conclusion

This at-the-market offering provides Oncolytics Biotech with an important source of potential capital to advance its lead clinical asset and maintain corporate operations. However, investors should be aware of the possibility of share dilution and increased volatility, as well as the dependence of share price performance on clinical and regulatory developments, especially those related to pelareorep.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to review the official filings and consult with their financial advisors before making investment decisions related to Oncolytics Biotech Inc. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

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