Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 48

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 48
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 the imposition
of significant civil, criminal and administrative penalties, damages, disgorgement, monetary fines, exclusion from participation in Medicare,
Medicaid and other federal healthcare programs, integrity and oversight agreements to resolve allegations of non-compliance, contractual
damages, reputational harm, diminished profits and future earnings, and curtailment or restructuring of our, our operations, any of which
could adversely affect our ability to operate our business and our results of operations. Even if we are successful in defending ourselves
or asserting our rights, the existence of these actions may adversely affect market prices of our common shares. In addition, the approval
and commercialization of any of our product candidates outside the United States will also likely subject us to foreign equivalents of
the healthcare laws mentioned above, among other foreign laws.

We may become subject to U. S. federal and state forfeiture laws
which could negatively impact our business operations.

Violations of any U. S. federal laws and regulations
could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted
by either the federal government or private citizens, or criminal charges, including, but not limited to, seizure of assets, disgorgement
of profits, cessation of business activities or divestiture. As an entity that conducts business involving scheduled drugs, we are potentially
subject to federal and state forfeiture laws (criminal and civil) that permit the government to seize the proceeds of criminal activity.
Civil forfeiture laws could provide an alternative for the federal government or any state (or local police force) that wants to discourage
residents from conducting transactions with scheduled drugs but believes criminal liability is too difficult to prove beyond a reasonable
doubt. Also, an individual can be required to forfeit property considered to be the proceeds of a crime even if the individual is not
convicted of the crime, and the standard of proof in a civil forfeiture matter is lower than the standard in a criminal matter. Depending
on the applicable law, whether federal or state, rather than having to establish liability beyond a reasonable doubt, the federal government
or the state, as applicable, may be required to prove that the money or property at issue is proceeds of a crime only by either clear
and convincing evidence or a mere preponderance of the evidence.

Investors located in jurisdictions where any of
our product candidates remain illegal may be at risk of prosecution under conspiracy, aiding and abetting, and money laundering statutes,
and be at further risk of losing their investments or proceeds under