Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 86

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 86
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 and officer of must disclose the nature and extent of any interest
that he or she has in a material contract or material transaction whether made or proposed with us, if the director or officer is a party
to the contract or transaction, is a director or an officer or an individual acting in a similar capacity of a party to the contract or
transaction, or has a material interest in a party to the contract or transaction. Subject to certain limited exceptions under the BCBCA,
no director may vote on a resolution to approve a material contract or material transaction which is subject to such disclosure requirement.
See “ Item 6. C. Compensation - Board Practices - Requirement for Directors and Officers to Disclose Interest in a Contract
or Transaction.” In addition, we have adopted a code of ethics and conduct that requires our employees, officers and directors to
disclose any situation that reasonably would be expected to give rise to a conflict of interest.

Risks Related to Ownership of Our Common Shares

We may be or may become classified as a passive foreign investment
company. If we are or become classified as a passive foreign investment company, our U. S. shareholders may suffer adverse tax consequences
as a result.

Generally, for any taxable year, if at least 75%
of our gross income is passive income, or at least 50% of the value of our assets is attributable to assets that produce passive income
or are held for the production of passive income, including cash, we would be characterized as a passive foreign investment company, or
PFIC, for U. S. federal income tax purposes. For purposes of these tests, passive income includes dividends, interest gains from commodities
and securities transactions, the excess of gains over losses from the disposition of assets which produce passive income (including amounts
derived by reason of the temporary investment of funds raised in offerings of our shares) and rents and royalties other than rents and
royalties which are received from unrelated parties in connection with the active conduct of a trade or business. If we are characterized
as a PFIC, our U. S. shareholders may suffer adverse tax consequences, including having gains realized on the sale of our Common Shares
treated as ordinary income, rather than capital gain, the loss of the preferential rate applicable to dividends received on our Common
Shares by individuals who are U. S. holders, and having interest charges apply to distributions by us and gains from the sales of our shares.

Our status as a PFIC will depend on the nature
and composition of our