Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 404

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 404
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 the former corporation and its shareholders, and that the only assets and
liabilities, and tax attributes, transferred by the former corporation and received by the resulting corporation are those of the former
corporation (and that the former corporation is wound up). The Domestication meets all of these requirements.

Treasury Regulations also require, as
a general rule, that in order to qualify as a reorganization under Section 368(a)(1), a transaction must meet a “continuity of interest”
test (under which a substantial portion of the resulting corporation’s stock is owned by shareholders of the former corporation)
and a “continuity of business enterprise” test (under which the resulting corporation carries on the historic business of
the former corporation or uses a significant part of its assets in a new business). If the Domestication is viewed, under a step-transaction
analysis, as part of a larger transaction that includes the DiamiR Merger, then it does not meet either of these tests. However, Reg.
Sec. 1.368-2(m)(2) provides: “A continuity of the business enterprise and a continuity of interest are not required for a potential
F reorganization to qualify as a reorganization under section 368(a)(1)(F).” Moreover, the Regulations strongly imply that, in determining
whether a qualified F reorganization has occurred, it is permissible to examine only the transactions constituting the reorganization
itself, not events that happen after (or before) the reorganization. See Treasury Decision (T.D.) 9739, Sep. 21, 2015: “The Final
Regulations adopt the [previously expressed rule] that related events preceding or following the Potential F Reorganization that constitutes
a Mere Change generally would not cause that Potential F Reorganization to fail to qualify as an F reorganization.”

Reg. Sec. 1.368-2(m) is a complex regulation
and, as it was only adopted in 2015, there are few IRS revenue rulings or private letter rulings, or court decisions, illustrating how
it is applied to specific fact patterns. None of the examples provided in the regulation itself describe a series of transactions like
those involved in this offering. Nonetheless, while the application of the Treasury regulations to a transaction such as the Domestication
is not entirely free from doubt, it is the opinion of our counsel that the Domestication will qualify as a “reorganization”
within the meaning of Section 368(a)(1)(F