Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 95

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 95
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time to HVII’s affairs and, accordingly, will have conflicts of interest in allocating their time among various business activities,
including identifying potential business combinations and monitoring the related due diligence. HVII does not have an employment agreement,
independent contractor agreement or service provider agreement with or key-man insurance on the life of, any of its directors or executive
officers. The unexpected loss of the services of one or more of HVII’s directors or executive officers could have a detrimental
effect on HVII.

  54  

Since
HVII’s sponsor, officers and directors will lose their entire investment in HVII if its initial business combination is not completed,
a conflict of interest may arise in determining whether a particular business combination target is appropriate for HVII’s initial
business combination.

HVII’s
sponsor owns 6,708,333 founder shares (as of March 28, 2025). The number of founder shares issued was determined based on the expectation
that such founder shares would represent 25% of the outstanding shares after this offering (excluding the private placement shares).
The founder shares will be worthless if HVII does not complete an initial business combination. HVII’s sponsor purchased 500,000
private placement units at a price of $10.00 per private placement unit ($5,000,000 in the aggregate). These securities will also be
worthless if HVII does not complete an initial business combination. Holders of founder shares have agreed (i) to vote any shares owned
by them in favor of any proposed initial business combination (except that any public shares such parties may purchase in compliance
with the requirements of Rule 14e-5 under the Exchange Act would not be voted in favor of approving the business combination transaction)
and (ii) not to redeem any founder shares in connection with a shareholder vote to approve a proposed initial business combination. In
addition, HVII may obtain loans from its sponsor, affiliates of its sponsor, or an officer or director. The personal and financial interests
of HVII’s officers and directors may influence their motivation in identifying and selecting a target business combination, completing
an initial business combination and influencing the operation of the business following the initial business combination.

HVII’s
officers and directors will allocate some of their time to other businesses, thereby causing conflicts of interest in their determination
as to how much time to devote to HVII’s affairs. This conflict of interest could have a negative impact on HVII’s ability
to complete its initial business combination.