Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 205

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 205
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 all subsequent taxation years deemed to be capital property. Resident Holders are advised to consult
their own tax advisors to determine whether such an election is available and desirable in their particular circumstances.

This summary is not applicable to a Resident Holder:
(i) that is a “financial institution” for the purposes of the “mark-to-market” rules contained in the Tax Act;
(ii) that is a “specified financial institution”; (iii) an interest in which would be a “tax shelter investment”;
or (iv) that enters into a “derivative forward agreement” in respect of Common Shares, as each of those terms is defined
in the Tax Act. This summary does not address the possible application of the “foreign affiliate dumping” rules that may
be applicable to a Resident Holder that is a corporation resident in Canada (for the purposes of the Tax Act) and is, or becomes, or
does not deal at arm’s length with a corporation resident in Canada that is, or that becomes, as part of a transaction or event
or series of transactions or events that includes the acquisition of the Common Shares, controlled by a non-resident corporation, individual,
trust or a group of any combination of non-resident individuals, trusts, and/or corporations who do not deal with each other at arm’s
length for purposes of the rules in section 212.3 of the Tax Act. Any such Resident Holder should consult its own tax advisor with respect
to an investment in Common Shares.

Dividends

In the case of a Resident Holder who is an individual
(other than certain trusts), dividends received or deemed to be received on the Common Shares will be included in computing the Resident
Holder’s income and will be subject to the gross-up and dividend tax credit rules that apply to taxable dividends received from
taxable Canadian corporations. Provided that we make the appropriate designations, such dividend will be treated as an “eligible
dividend” for the purposes of the Tax Act and a Resident Holder who is an individual will be entitled to an enhanced dividend tax
credit in respect of such dividend. There may be limitations on our ability to designate dividends and deemed dividends as eligible dividends.

Dividends received or deemed to be received on
the Common Shares by a Resident Holder that is a corporation will be required to be included in computing the corporation’s income
for the taxation year in which such dividends are received, but such dividends will generally be deductible in computing the corporation’s
taxable income. In certain circumstances, subsection 55(2)