Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 211

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 211
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. S. Holder that holds our Common Shares as a hedge or as part
of a hedging, straddle, conversion or constructive sale transaction or other risk-reduction transaction for U. S. federal income tax purposes;
(5) a tax-exempt organization, qualified retirement plan, individual retirement account or other tax-deferred account; (6) real estate
investment trusts or grantor trusts; (7) a U. S. expatriate or a former long-term resident of the United States; or (8) a person having
a functional currency other than the U. S. dollar. This discussion does not address the U. S. federal income tax treatment of a U. S. Holder
that owns, directly, indirectly or constructively, at any time, Common Shares representing 10% or more of the stock of our Company. Additionally,
the U. S. federal income tax treatment of partnerships (or other pass-through entities) or persons who hold Common Shares through a partnership
or other pass-through entity are not addressed.

Each
prospective investor is advised to consult his or her own tax adviser for the specific tax consequences to that investor of purchasing,
holding or disposing of our Common Shares, including the effects of applicable state, local, foreign or other tax laws and possible changes
in the tax laws.

Taxation of Dividends Paid on Common Shares

We do not intend to pay dividends in the foreseeable
future. In the event that we do pay dividends, and subject to the discussion under the heading “ Passive Foreign Investment Company
Rules” below and the discussion of “qualified dividend income” below, a U. S. Holder will be required to include in
gross income as ordinary income the amount of any distribution paid on the Common Shares (including the amount of any Canadian tax withheld
on the date of the distribution), to the extent that such distribution does not exceed our current and accumulated earnings and profits,
as determined for U. S. federal income tax purposes. The amount of a distribution that exceeds our earnings and profits will be treated
first as a non-taxable return of capital, reducing the U. S. Holder’s tax basis for the Common Shares to the extent thereof, and
then as capital gain. We do not expect to maintain calculations of our earnings and profits under U. S. federal income tax principles
and, therefore, U. S. Holders should expect that the entire amount of any distribution generally will be reported as dividend income.

In general, preferential