Company: HVIIR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023283
Chunk: 72

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 units and any sale of securities in connection with its business combination, its shares, debt or a combination of cash, shares
and debt.

The
issuance of additional ordinary shares in a business combination:

    ●
    may
    significantly dilute the equity interest of HVII’s public shareholders, which dilution would increase if the anti-dilution
    provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis
    upon conversion of the Class B ordinary shares;

    ●
    may
    subordinate the rights of holders of ordinary shares if preference shares is issued with rights senior to those afforded to ordinary
    shares;

    ●
    could
    cause a change of control if a substantial number of ordinary shares are issued, which may affect, among other things, HVII’s
    ability to use its net operating loss carry forwards, if any, and could result in the resignation or removal of HVII’s present
    officers and directors;

    ●
    may
    have the effect of delaying or preventing a change of control of HVII by diluting the equity ownership or voting rights of a person
    seeking to obtain control of HVII; and

    ●
    may
    adversely affect prevailing market prices for Class A ordinary shares and/or share rights.

Similarly,
if HVII issues debt securities or otherwise incur significant indebtedness, it could result in:

    ●
    default
    and foreclosure on HVII’s assets if its operating revenues after a business combination are insufficient to repay its debt
    obligations;

20

    ●
    acceleration
    of HVII’s obligations to repay the indebtedness even if it makes all principal and interest payments when due if HVII breaches
    certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that
    covenant;

    ●
    HVII’s
    immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;

    ●
    HVII’s
    inability to obtain necessary additional financing if the debt contains covenants restricting its ability to obtain such financing
    while the debt is outstanding;

    ●
    HVII’s
    inability to pay dividends on ordinary shares;

    ●
    using
    a substantial portion of HVII’s cash flow to pay principal and interest on its debt, which will reduce the funds available
    for dividends on ordinary shares,