Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 51

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 51
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 purchase price, or requires it to have a minimum amount of cash at closing, HVII will need to reserve a portion of
the cash in the trust account to meet such requirements, or arrange for third-party financing. In addition, if a larger number of shares
are submitted for redemption than HVII initially expected, it may need to restructure the transaction to reserve a greater portion of
the cash in the trust account or arrange for third-party financing. Raising additional third-party financing may involve dilutive equity
issuances or the incurrence of indebtedness at higher than desirable levels. Furthermore, this dilution would increase to the extent
that the anti-dilution provision of the Class B ordinary shares results in the issuance of Class A shares on a greater than one-to-one
basis upon conversion of the Class B ordinary shares at the time of HVII’s business combination. In addition, the underwriters have agreed to defer underwriting commissions equal to up to 4.0% of the gross proceeds
of HVII’s initial public offering, payable to the underwriters upon consummation of HVII’s initial business combination. Upon the consummation
of HVII’s initial business combination, up to 4.0% of the deferred underwriting commissions, which will be reduced based on the percentage
of total funds from the trust account released to pay redeeming public shareholders. Even though the deferred underwriting commissions
are reduced in proportion to the amount of redemptions by HVII’s public shareholders, if HVII’s public shareholders exercise redemption
rights with respect to a large number of shares, there may not be sufficient cash in the trust account to meet a minimum cash condition
at closing of HVII’s initial business combination and require additional third-party financing, which may result in dilutive equity issuances
or the incurrence of indebtedness at higher than desirable levels. There are no redemption rights with respect
to the share rights. The above considerations may limit HVII’s ability to complete the most desirable business combination available
to it or optimize its capital structure.

The
requirement that HVII complete its initial business combination within the prescribed time frame may give potential target businesses
leverage over HVII in negotiating an initial business combination and may decrease its ability to conduct due diligence on potential
business combination targets as it approaches its dissolution deadline, which could undermine its ability to complete its initial business
combination on terms that would produce value for its shareholders.

Any
potential target business with which HVII enters into