Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 64

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 64
---
ational new drug application-enabling or clinical trial application-enabling studies due to restrictions of on-site staff and unfore...  

  interruption of, or delays in receiving, supplies of our product candidates from our contract manufacturing organizations due to staffing shortages, production slowdowns or stoppages and disrup...  

  limitations on our ability to recruit and hire key personnel due to our inability to meet with candidates because of travel restrictions and “shelter in place” orders;  

  limitations on employee resources that would otherwise be focused on the conduct of our preclinical studies and clinical trials, including because of sickness of employees or their families or ...  

  interruption or delays to our sourced discovery and clinical activities.  

Risks Related to Our Corporate Structure

One of our directors controls a majority
of our voting shares.

One of our Executive Directors
and CEO, Mr. Ian Huen, and his affiliates, over which he is deemed to have control and/or have substantial influence, has voting rights
with respect to an aggregate of3,506,391Ordinary Shares, on an as converted basis (1,900,244Class A Ordinary Shares and 1,606,147 Class B Ordinary Shares), representing approximately 87% of the voting power of our outstanding
ordinary shares as of the date hereof. As a result, Mr. Huen has the ability to control the outcome of matters submitted to our shareholders
for approval, including the election of directors and any merger, consolidation, or sale of all or substantially all of our assets. Additionally,
in the event that Mr. Huen controls our company at the time of his death, control may be transferred to a person or entity that he designates
as his successor. As a board member, Mr. Huen owes a fiduciary duty to our shareholders and must act in good faith in a manner he
reasonably believes to be in the best interests of our shareholders. As a shareholder, even a controlling shareholder, Mr. Huen is
entitled to vote his shares, and shares over which he has voting control as a result of voting agreements, in his own interests, which
may not always be in the interests of our shareholders generally.

As a “controlled company” under
the rules of the NASDAQ Capital Market, we may choose to exempt our company from certain corporate governance requirements that could
have an adverse effect on our public shareholders.

Our directors and officers
beneficially own a majority of the voting power of our outstanding Ordinary Shares. Under the Rule 4350