Oncothyreon announces commitments to purchase $11.1 million of company securities in a registered direct financing

    SEATTLE, May 20 /CNW/ - Oncothyreon Inc. (Nasdaq:   ONTY) (TSX: ONY)
announced today that it has obtained commitments from several investors to
purchase approximately 3.88 million shares of its common stock and warrants to
purchase approximately 2.91 million shares of its common stock for gross
proceeds of approximately $11.1 million. The investors have agreed to purchase
the shares and warrants for $2.85 per unit (each unit consisting of one share
and a warrant to purchase 0.75 shares of common stock), which price represents
approximately a 12% discount to the trailing 60-trading day volume weighted
average price of $3.23. The exercise price of the warrants will be $3.92 per
share. The warrants will be exercisable at any time on or after the six-month
anniversary and prior to the fifth anniversary of the closing of the
transaction. The closing of the offering is expected to take place on May 26,
2009, subject to satisfaction of customary closing conditions. Oncothyreon
plans to use the proceeds from this financing for general corporate purposes.
Boenning & Scattergood, Inc. acted as exclusive placement agent in the
    A registration statement relating to these securities (File No.
333-149837) has been declared effective by the Securities and Exchange
Commission. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor, shall there be any sale of these
securities in any jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. Any offer of these securities will be solely by
means of a prospectus included in the registration statement and any
prospectus supplement that may be issued with respect to such offering. Copies
of the final prospectus, including the prospectus supplement when filed, can
be obtained at the Securities and Exchange Commission's website, www.sec.gov,
from Oncothyreon at its Seattle, Washington address below or Boenning &
Scattergood, Inc. by calling 1-800-883-1212.

    About Oncothyreon

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

For further information:

For further information: Investor and Media Relations Contact: Julie
Rathbun, Rathbun Communications, (206) 769-9219, ir@oncothyreon.com

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