CALGARY, Dec. 13 /CNW/ - Oncolytics Biotech Inc. (“Oncolytics”) (TSX:ONC, NASDAQ:ONCY) announced today that it has entered into a private placement with a number of institutional investors. Under the agreement, Oncolytics will issue 3,200,000 units (the “Units”) at a price of $5.15 per Unit, resulting in gross proceeds to the Company of $16,480,000. Each Unit consists of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to acquire one common share upon payment of $6.15 per share for a period of 36 months following the closing date. The net proceeds from the offering will be used to support the initiation of the company’s Phase II clinical program and for general corporate purposes. The offering is expected to close on or about December 29, 2005 and is subject to the receipt of all necessary regulatory and stock exchange approvals.