Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 107

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 107
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and share rights are listed on Nasdaq, HVII’s securities are covered securities. Although the states are preempted from regulating
the sale of HVII’s securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud,
and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular
case. While HVII is not aware of a state having used these powers to prohibit or restrict the sale of securities issued by SPACs, other
than the State of Idaho, certain state securities regulators view SPACs unfavorably and might use these powers, or threaten to use these
powers, to hinder the sale of securities of SPACs in their states. Further, if HVII were no longer listed on Nasdaq, its securities would
not be covered securities and HVII would be subject to regulation in each state in which it offers its securities, including in connection
with its initial business combination.

The
grant of registration rights to HVII’s initial shareholders may make it more difficult to complete its initial business combination,
and the future exercise of such rights may adversely affect the market price of HVII’s Class A ordinary shares.

Pursuant
to an agreement to be entered into concurrently with the issuance and sale of the securities in HVII’s initial pubic offering,
HVII’s initial shareholders and their permitted transferees can demand that HVII register the private placement units and the Class
A ordinary shares underlying such private placement units and the private placement rights included in such private placement units,
the Class A ordinary shares issuable upon conversion of the founder shares, the private placement units that may be issued upon conversion
of working capital loans and the Class A ordinary shares underlying such private placement units and the private placement rights included
in such private placement units. HVII will bear the cost of registering these securities. The registration and availability of such a
significant number of securities for trading in the public market may have an adverse effect on the market price of HVII’s Class
A ordinary shares. In addition, the existence of the registration rights may make HVII’s initial business combination more costly
or difficult to conclude. This is because the shareholders of the target business may increase the equity stake they seek in the combined
entity or ask for more cash consideration to offset the negative impact on the market price of HVII’s Class A ordinary shares that
is expected when the securities owned by HVII’s initial shareholders or holders of working capital