Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 244

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 244
---
 requirements. If HVII had positive earnings and profits through the date of the Domestication, a U.S. Holder that makes the election described herein could have an “all earnings and profits amount” with respect to its HVII Ordinary Shares, and thus could be required to include that amount in income as a deemed dividend as a result of the Domestication.

Each U.S. Holder is urged to consult its tax advisor regarding the consequences to it of making an election to include in income the “all earnings and profits amount” attributable to its HVII Class A ordinary shares under Section 367(b) of the Code and the appropriate filing requirements with respect to such an election.

U.S. Holders that Own HVII Shares with a Fair Market Value of Less Than $50,000

A U.S. Holder who, on the date of the Domestication, is not a 10% U.S. Shareholder and whose HVII Class A Ordinary Shares have a fair market value of less than $50,000 generally should not be required to recognize any gain or loss or include any part of the “all earnings and profits amount” in income under Section 367(b) of the Code in connection with the Domestication. However, such U.S. Holder may be subject to taxation under the PFIC rules as discussed below under the section entitled “ — 4. PFIC Considerations”.

ALL U.S. HOLDERS ARE URGED TO CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE TIMING, THE APPLICABILITY AND THE CONSEQUENCES OF SECTION 367(b) OF THE CODE TO THEIR PARTICULAR CIRCUMSTANCES.

4. PFIC Considerations

In addition to the discussion above under the section entitled “— 3. Effects of Section 367 to U.S. Holders of HVII Class A Ordinary Shares”), the Domestication could be a taxable event to U.S. Holders under the PFIC provisions of the Code if HVII is considered a PFIC.

Definition of a PFIC

A non-U.S. corporation will be classified as a PFIC for U.S. federal income tax purposes for any taxable year if either (a) at least seventy five percent (75%) of its gross income, including its pro rata share of the gross income of any corporation in which it is considered to own at least twenty five percent (25%) of the shares by value, is passive income or (b) at least fifty percent (50%) of its assets during the taxable year (ordinarily determined based