Company: APM
Filing Date: 2025-07-15
Form Type: DRS
Source: 0001213900-25-063899
Chunk: 375

Company: Aptorum Group Ltd
Filing Date: 2025-07-15
Form: DRS
Chunk 375
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 federal income tax consequences of the Domestication to U.S. Holders of Company shares, subject to
the limitations, exceptions, beliefs, assumptions, and qualifications described in such opinion and herein.

As discussed below, it is the opinion
of our counsel that, while the issue is not entirely free from doubt, the Domestication will qualify as a “reorganization”
within the meaning of Code section 368(a)(1)(F); therefore (subject to the Section 367(b) rules and the Passive Foreign Investment Company
(“PFIC”) rules (both discussed below)) U.S. Holders will not recognize gain or loss on the exchange of their Company shares
for Purchaser Common Stock.

Code section 354 provides: “No
gain or loss shall be recognized if stock or securities in a corporation a party to a reorganization are, in pursuance of the plan of
reorganization, exchanged solely for stock or securities in such corporation or in another corporation a party to the reorganization.”
Under Code section 368(a)(1), a “reorganization” includes “(F) a mere change in identity, form, or place of organization
of one corporation, however effected.” Under Code section 368(b), a “party to a reorganization” includes “(1)
a corporation resulting from a reorganization, and (2) both corporations, in the case of a reorganization resulting from the acquisition
by one corporation of stock or properties of another.” Accordingly, the Domestication, as a change in the place of organization
of Company, constitutes a reorganization under Section 368(a)(1)(F) to which Company is a party, provided that the transaction otherwise
qualifies under Section 368 and the regulations promulgated under Section 368.

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Treasury Regulation Section (“Reg
Sec.”) 1.368-2(m) provides that six requirements must be satisfied in order for a reorganization to qualify as a reorganization
under Section 368(a)(1)(F). These requirements are intended to assure that, at least immediately after the reorganization, the only parties
involved in the transaction are the resulting corporation and 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