Switzerland-based SELLAS Life Sciences Group Ltd. entered an all-stock reverse merger agreement with Galena Biopharma Inc.

The resulting company, which will be named SELLAS Life Science Group Inc., will focus on the development of novel treatments for cancer. It will be 32.5% owned by Galena stock and warrant holders with the rest under the ownership of SELLAS shareholders.

Shares of the combined company will trade on the Nasdaq Capital Market under the SLS symbol.

The new company will be headed by SELLAS CEO Angelos Stergiou who will retain the same position in the combined entity. Galena's existing directors will resign, while a new board of seven members will be formed, composed of five nominees from SELLAS and two from Galena.

The deal is backed by the boards of both companies and, subject to customary closing conditions, is expected to close in the fourth quarter of 2017.

Canaccord Genuity Inc. and Guggenheim Securities acted as financial advisers to Galena and SELLAS, respectively.

Paul Hastings LLP and BeesMont Law Ltd. acted as legal counsel to Galena, while Cooley LLP and Conyers Dill & Pearman acted as legal counsel to SELLAS.