Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 206

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 10
Chunk 206
---
 of the Tax Act will treat a taxable dividend received by a Resident Holder
that is a corporation as proceeds of disposition or a capital gain. Resident Holders that are corporations should consult their own tax
advisors having regard to their own circumstances.

A Resident Holder that is a “private corporation”
or a “subject corporation” (each as defined in the Tax Act) may be liable under Part IV of the Tax Act to pay a refundable
tax on dividends received or deemed to be received on the Common Shares to the extent that such dividends are deductible in computing
the Resident Holder’s taxable income for the taxation year.

Dividends received by a Resident Holder who is
an individual (including certain trusts) may result in such Resident Holder being liable for alternative minimum tax under the Tax Act.
Resident Holders who are individuals should consult their own tax advisors in this regard.

Dispositions of Common Shares

A disposition or deemed disposition of a Common
Share by a Resident Holder will generally result in the Resident Holder realizing a capital gain (or capital loss) equal to the amount
by which the proceeds of disposition of the Common Share, net of any reasonable costs of disposition, are greater (or less) than the
Resident Holder’s adjusted cost base of the Common Shares. Such capital gain (or capital loss) will be subject to the tax treatment
described below under “ - Taxation of Capital Gains and Capital Losses.”

The adjusted cost base to the Resident Holder
of a voting share acquired will, at any particular time, be determined in accordance with certain rules in the Tax Act by averaging the
cost of such share with the adjusted cost base of all Common Shares owned by the Resident Holder as capital property at that time, if
any.

Taxation of Capital Gains and Capital Losses

Generally, one-half of any capital gain (a “taxable
capital gain”) realized by a Resident Holder in a taxation year must be included in computing the Resident Holder’s income
for the year, and one-half of any capital loss (an “allowable capital loss”) realized by a Resident Holder in a taxation
year must be deducted from taxable capital gains realized by the Resident Holder in that year. Allowable capital losses for a taxation
year in excess of taxable capital gains for that year generally may be carried back and deducted in any of the three preceding taxation
years or carried forward and deducted in any subsequent taxation year against net taxable capital gains realized in such years, to the
extent and under the circumstances