Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 213

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 213
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 these requirements
have been met and, accordingly, no assurance can be given that any withholding tax on dividends paid by us will be creditable. For purposes
of calculating the U. S. foreign tax credit, dividends paid with respect to our Common Shares generally will be treated as foreign source
income and as passive category income. In lieu of claiming a foreign tax credit, a U. S. Holder may deduct foreign taxes, including any
foreign income tax imposed with respect to their Common Shares, in computing their taxable income, subject to generally applicable limitations
under U. S. federal income tax law.

The rules relating to the determination of the
foreign tax credit are complex, and each U. S. Holder should consult its tax advisors to determine whether and to what extent such U. S.
Holder will be entitled to this credit.

Taxation of the Sale, Exchange or other Disposition of Common
Shares

Except as provided under the PFIC rules described
below under “ Passive Foreign Investment Company Rules,” upon the sale, exchange or other disposition of our Common Shares,
a U. S. Holder will recognize capital gain or loss in an amount equal to the difference between such U. S. Holder’s tax basis for
the Common Shares, determined in U. S. dollars, and the U. S. dollar value of the amount realized on the disposition (or its U. S. dollar
equivalent determined by reference to the spot rate of exchange on the date of disposition, if the amount realized is denominated in
a foreign currency). The gain or loss realized on the sale, exchange or other disposition of Common Shares will be long-term capital
gain or loss if the U. S. Holder has a holding period of more than one year at the time of the disposition. Individuals who recognize
long-term capital gains may be taxed on such gains at reduced rates of tax. The deduction of capital losses is subject to various limitations.

Passive Foreign Investment Company Rules

The treatment of U. S. Holders of Common Shares
could be materially different from that described above if we are treated as a PFIC for U. S. federal income tax purposes. We will be
treated as a PFIC for U. S. federal income tax purposes for any taxable year with respect to which either:

  75% or more of our gross income constitutes passive  

  50% or more of our assets (generally determined on                                                   
  the basis of a quarterly average value) are held for the production of