Company: APM
Filing Date: 2025-12-05
Form Type: 424B5
Source: 0001213900-25-118752
Chunk: 116

Company: Aptorum Group Ltd
Filing Date: 2025-12-05
Form: 424B5
Chunk 116
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For a more detailed discussion
of the application of the PFIC rules to us and the consequences to U.S. holders if we were determined to be a PFIC. (See “Taxation — Material
U.S. Federal Income Tax Considerations for U.S. Holders — Passive Foreign Investment Company Rules”)

Risks Related to Aptorum’s Corporate Structure

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

One of our Executive Directors
and Chief Executive Officer, 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 of 2,114,114 Ordinary Shares, (507,967 Aptorum Class A ordinary shares, indirectly
and directly, and 1,606,147 Aptorum 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 theNasdaq 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(c) of the Nasdaq Capital
Market, a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled
company” and may elect not to comply with certain corporate governance requirements, including the requirement that a majority of
our directors be independent, as defined in the Nasdaq Capital Market