Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 94

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 3
Chunk 94
---
 is widely believed to be developing nuclear weapons. Iran is also believed to have a strong influence among extremist
groups in the region, such as Hamas in Gaza, Hezbollah in Lebanon, the Houthis in Yemen and various rebel militia groups in Syria and
Iraq. These situations may potentially escalate in the future to more violent events which may affect Israel and us. Any hostilities,
armed conflicts, terrorist activities involving Israel or the interruption or curtailment of trade between Israel and its trading partners,
or any political instability in the region could adversely affect business conditions and our results of operations and could make it
more difficult for us to raise capital and could adversely affect the market price of our ordinary shares. An escalation of tensions or
violence might result in a significant downturn in the economic or financial condition of Israel, which could have a material adverse
effect on our operations in Israel and our business. Parties with whom we do business have sometimes declined to travel to Israel during
periods of heightened unrest or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners
face to face. In addition, the political and security situation in Israel may result in parties with whom we have agreements involving
performance in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure
provisions in such agreements.

Since the war broke out on October 7, 2023, our
operations have not been adversely affected by this situation, and we have not experienced disruptions to our clinical studies, facilities
or the manufacturing or supply of our drug candidates. However, the intensity and duration of Israel’s current war against Hamas
is difficult to predict at this stage, as are such war’s economic implications on our business and operations and on Israel’s
economy in general, and we continue to monitor the situation closely and examine the potential disruptions that could adversely affect
our operations.

Our insurance does not cover losses that may occur
as a result of an event associated with the security situation in the Middle East or for any resulting disruption in our operations. Although
the Israeli government has in the past covered the reinstatement value of direct damages that were caused by terrorist attacks or acts
of war, we cannot assure you that this government coverage will be maintained or, if maintained, will be sufficient to compensate us fully
for damages incurred, and the government may cease providing such coverage or the coverage might not suffice to cover potential damages.
Any losses or damages incurred by us could have a material adverse effect on our business