Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 248

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 248
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. Holder has made a timely and effective election to treat HVII as a “qualified electing fund” under Section 1295 of the Code for the taxable year that is the first year in the U.S. Holder’s holding period of HVII Class A Ordinary Shares during which HVII qualified as a PFIC (a “QEF Election”) or, if in a later taxable year, the U.S. Holder made a QEF Election along with a purging election. One type of purging election creates a deemed sale of the U.S. Holder’s HVII Class A Ordinary Shares at their then fair market value and requires the U.S. Holder to recognize gain pursuant to such purging election subject to the excess distribution regime described above. As a result of any such purging election, the U.S. Holder would increase the adjusted tax basis in its HVII Class A Ordinary Shares by the amount of the gain recognized and, solely for purposes of the PFIC rules, would have a new holding period in its HVII Class A Ordinary Shares. U.S. Holders are urged to consult their tax advisors as to the application of the rules governing purging elections to their particular circumstances.

A U.S. Holder’s ability to make a timely and effective QEF Election (or a QEF Election along with a purging election) with respect to its HVII Class A Ordinary Shares is contingent upon, among other things, the provision by HVII of a “PFIC Annual Information Statement” to such U.S. Holder. If HVII determines that HVII is a PFIC for any taxable year, upon written request, HVII will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC Annual Information Statement, in order to enable the U.S. Holder to make and maintain a QEF election, but there is no assurance that HVII will timely provide such required information. An Electing Shareholder generally would not be subject to the excess distribution regime discussed above with respect to their HVII Class A Ordinary Shares. As a result, an Electing Shareholder generally is not expected to recognize gain or loss as a result of the Domestication except to the extent described under “ — 3. Effects of Section 367 to U.S. Holders of HVII Class A Ordinary Shares”, and subject to the discussion above under “ — A. Tax Consequences of the Domestication to U.S. Holders”, but rather would include annually in gross income its pro rata share of the