Company: HVIIR
Filing Date: 2025-01-15
Form Type: S-1/A
Source: 0001493152-25-002259
Chunk: 245

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-01-15
Form: S-1/A
Chunk 245
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 which or with which our taxable year ends. A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

The treatment of the Share Rights to acquire our Class A ordinary shares and the application of the PFIC rules to the Share Rights is unclear. For example, the rights may be viewed as a forward contract, derivative security or similar interest in our company (analogous to a warrant or option with no exercise price), and thus the holder of the Share Rights would not be viewed as owning the Class A ordinary shares issuable pursuant to the Share Rights until such Class A ordinary shares are actually issued. There may be other alternative characterizations of the rights that the IRS may successfully assert, including that the Share Rights are treated as equity in our company at the time the Share Rights are issued, that would result in different conclusions regarding the tax treatment of the Share Rights under the PFIC rules. Different PFIC consequences may result for U.S. Holders of the Share Rights depending on which characterization is successfully applied to the Share Rights. It is also likely that a U.S. Holder of Share Rights would not be able to make a QEF or mark-to-market election (discussed below) with respect to such U.S. Holder’s Share Rights. Due to the uncertainty of the application of the PFIC rules to the Share Rights, potential investors are strongly urged to consult with their own tax advisors regarding an investment in the Share Rights offered hereunder and the subsequent consequences to holders of such Share Rights in any initial business combination.

The QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund), including the information provided in a PFIC Annual Information Statement, to a timely filed U.S. federal income tax return for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement with such return and if certain other conditions are met or with the consent of the IRS. U.S. Holders should consult their tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

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In order to comply with the requirements of a