Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 64

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 64
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risk analysis. Even though these charges may be non-cash items and not have an immediate impact on HVII’s liquidity, the fact that
it reports charges of this nature could contribute to negative market perceptions about HVII or its securities. In addition, charges
of this nature may cause HVII to violate net worth or other covenants to which it may be subject as a result of assuming pre-existing
debt held by a target business or by virtue of obtaining debt financing to partially finance the initial business combination. Accordingly,
any public shareholders who choose to remain shareholders following the initial business combination could suffer a reduction in the
value of their shares.

If
third parties bring claims against HVII, the proceeds held in the trust account could be reduced and the per-share redemption amount
received by shareholders may be less than $10.00 per share.

HVII’s
placing of funds in the trust account may not protect those funds from third-party claims against it. Although HVII will seek to have
all vendors, service providers, prospective target businesses and other entities with which it does business execute agreements with
HVII waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the benefit of its public
shareholders, such parties may not execute such agreements, or even if they execute such agreements they may not be prevented from bringing
claims against the trust account, including, but not limited to, fraudulent inducement, breach of fiduciary responsibility or other similar
claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain advantage with respect to a claim
against HVII’s assets, including the funds held in the trust account. If any third party refuses to execute an agreement waiving
such claims to the monies held in the trust account, HVII’s management will perform an analysis of the alternatives available to
it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s
engagement would be significantly more beneficial to HVII than any alternative. Withum Smith+Brown, PC (“ Withum”), HVII’s
independent registered public accounting firm, and the underwriters of HVII’s initial public offering have not executed agreements
with HVII waiving such claims to the monies held in the trust account.

  37  

Examples
of possible instances where HVII may engage a third party that refuses to execute a waiver