Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 410

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 410
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 equivalent in all material respects to those it would possess as the sole equity holder of the VIE,
including absolute control rights and the rights to the assets, property and revenue of the VIE.

There is no authority as to
whether such an arrangement constitutes ownership of the VIE by Aptorum for purposes of U.S. federal income tax law. While its contractual
arrangements with the VIE would seem to give Aptorum an ownership interest in the VIE as a practical matter, there is no assurance that
the IRS or a U.S. court would determine that such ownership interest in fact exists. Accordingly, there can be no assurance that Aptorum
will not be treated as a PFIC.

Effect of the PFIC rules on the Domestication

Even if the Domestication
qualifies as a “reorganization” within the meaning of Code section 368(a)(1)(F), the Domestication may be a taxable event
to U.S. Holders of Aptorum shares under the PFIC rules to the extent that Section 1291(f) of the Code applies.

Code section 1291(f) requires
that, to the extent provided in Treasury regulations, a U.S. person that disposes of stock of a PFIC must recognize gain, in the manner
described below, notwithstanding any other provision of the Code (including the nonrecognition provisions of Section 354). No final Treasury
regulations are in effect under Section 1291(f); however, the IRS has published proposed regulations, described below, that (according
to the regulations as proposed) if adopted would be retroactive to the date of their publication. If final regulations under Code section
1291(f) were adopted as proposed, the PFIC rules would apply to a U.S. Holder of Aptorum shares if Aptorum has been a PFIC with respect
to the U.S. Holder at any time that the U.S Holder has owned his Aptorum shares.

The proposed Treasury regulations
were promulgated in 1992. If finalized in their present form, and if Aptorum were determined to be a PFIC with respect to any U.S. Holder,
the Proposed Regulations would require taxable gain recognition from the Domestication for a U.S. Holder who had not made a certain election
(described below) with respect to his Aptorum shares. Any such gain would be taxed as follows: the amount of the gain would be (i) allocated
ratably to each day that the U.S. Holder