Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 42

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 42
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. To the
extent that the Combined Company raises additional capital by issuing equity securities, such an issuance may cause significant dilution
to the Combined Company’s stockholders’ ownership and the terms of any new equity securities may have preferences over the
Combined Company’s common stock. Any debt financing the Combined Company enters into may involve covenants that restrict its operations.
These restrictive covenants may include limitations on additional borrowing and specific restrictions on the use of the Combined Company’s
assets, as well as prohibitions on its ability to create liens, pay dividends, redeem its stock or make investments. In addition, if the
Combined Company raises additional funds through licensing, partnering or other strategic arrangements, it may be necessary to relinquish
rights to some of the Combined Company’s technologies or product candidates and proprietary rights, or grant licenses on terms that
are not favorable to the Combined Company.

The Combined Company’s
failure to raise capital as and when needed would have a negative effect on its financial condition and its ability to develop and commercialize
its pipeline and otherwise pursue the Combined Company’s business strategy and the Combined Company may be unable to continue as
a going concern.

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Anti-takeover provisions in the Proposed Charter and the Proposed Bylaws and under Delaware law could make an acquisition of the Combined Company, which may be beneficial to its stockholders, more difficult and may prevent attempts by its stockholders to replace or remove the Combined Company’s management.

The Proposed Charter and the Proposed Bylaws,
each of which will be in effect upon completion of the Merger, and the DGCL contains provisions that could make it more difficult for
a third party to acquire the Combined Company, even if doing so might be beneficial to the Combined Company’s stockholders. Among
other things, these provisions include:

| ● | allow the Combined Company Board                                                                                                       
 to authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued 
 without stockholder approval, and which may include supermajority voting, special approval, dividend, or other rights or preferences   
 superior to the rights of other stockholders;                                                                                          |

| ● | provide for a classified board                
 of directors with staggered three-year terms; |

| ● | provide that, at any time, directors                                                                                                       
 may only be removed for cause, and only by the affirmative vote of holders of at least 66 2/3% in voting power of all the then