February 19, 2010 (FinancialWire) — Oncothyreon Inc. (NASDAQ: ONTY) said it has entered into an arrangement agreement under which it will sell its interests in Oncothyreon Canada Inc., an indirect wholly owned subsidiary, and 0811769 B.C. ULC, an indirect wholly owned subsidiary and the parent corporation of Oncothyreon Canada Inc., for around Cdn $8.425 million to Gamehost Income Fund.

Prior to the sale, Oncothyreon Canada Inc. will be reorganized into an Alberta ULC and 0811769 B.C. ULC will be reorganized into a limited corporation and each will distribute its business assets to a subsidiary of Oncothyreon Inc.

The consideration to be paid by Gamehost will consist of Cdn $7.825 million cash being paid at closing of the arrangement with Cdn $600,000 being delivered through retained equity in post-arrangement Gamehost. The arrangement also forms part of Gamehost’s planned conversion from an income trust structure to a corporation.

Washington-based Oncothyreon is a biotechnology company specializing in the development of therapeutic products for the treatment of cancer.

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