Under the terms of the agreement, Santersus investors will command approximately 85% of the newly formed company, leaving current Xenetic shareholders with a 15% stake. The merged business will operate under the name Santersus Bio and maintain its listing on the Nasdaq Capital Market using the ticker symbol SNTS. Trading for Xenetic shares, which finished Tuesday at $4.27, was suspended premarket Wednesday ahead of the announcement.

This strategic combination aims to build a clinical-stage organization centered on targeting neutrophil extracellular traps. These structures are recognized as significant drivers of pathology in critical care, transplantation, autoimmune conditions, and oncology. By utilizing a reverse merger rather than a traditional initial public offering, Santersus bypasses the higher costs and complexities typically associated with entering the public equity markets.