Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 132

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 132
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 criticism and negative
publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting,
inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud.

On April 21, 2020, SEC
Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement
highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China,
including Hong Kong, reiterating past SEC and PCAOB statements on matters including the difficulty associated with inspecting accounting
firms and audit work papers in China and Hong Kong and higher risks of fraud in emerging markets and the difficulty of bringing and
enforcing SEC, Department of Justice and other U.S. regulatory actions, including in instances of fraud, in emerging markets generally.

On May 20, 2020, the U.S. Senate
passed the HFCA Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable
to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect
the company’s auditors for three consecutive years, the issuer’s securities are prohibited to trade on a national exchange.
On December 2, 2020, the U.S. House of Representatives approved the HFCA Act.

On May 21, 2021, Nasdaq
filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in a “Restrictive
Market”, (ii) prohibit Restrictive Market companies from directly listing on Nasdaq Capital Market, and only permit them to
list on Nasdaq Global Select or Nasdaq Global Market in connection with a direct listing and (iii) apply additional and more stringent
criteria to an applicant or listed company based on the qualifications of the company’s auditors.

On March 24, 2021, the
SEC announced the adoption of interim final amendments to implement the submission and disclosure requirements of the HFCA Act. In the
announcement, the SEC clarifies that before any issuer will have to comply with the interim final amendments, the SEC must implement a
process for identifying covered issuers. The announcement also states that the SEC staff is actively assessing how best to implement the
other requirements of the HFCA Act, including the identification process and the trading prohibition