Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 50

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 50
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) cash for working capital or other general corporate purposes or (iii) the retention of cash to
satisfy other conditions. If too many public shareholders exercise their redemption rights, HVII would not be able to meet such closing
condition and, as a result, would not be able to proceed with the business combination. Consequently, if accepting all properly submitted
redemption requests would not allow HVII to satisfy a closing condition as described above, it would not proceed with such redemption
and the related business combination and may instead search for an alternate business combination. Prospective targets will be aware
of these risks and, thus, may be reluctant to enter into a business combination transaction with HVII.

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The
ability of HVII’s public shareholders to exercise redemption rights with respect to a large number of its shares could increase
the probability that its initial business combination would be unsuccessful and that shareholders would have to wait for liquidation
in order to redeem their ordinary shares.

If
HVII’s initial business combination agreement requires it to use a portion of the cash in the trust account to pay the purchase
price, or requires it to have a minimum amount of cash at closing, the probability that its initial business combination would be unsuccessful
is increased. If HVII’s initial business combination is unsuccessful, shareholders would not receive their pro rata portion of
the funds in the trust account until HVII liquidates the trust account. If shareholders are in need of immediate liquidity, they could
attempt to sell their shares in the open market; however, at such time HVII’s shares may trade at a discount to the pro rata amount
per share in the trust account. In either situation, shareholders may suffer a material loss on their investment or lose the benefit
of funds expected in connection with their exercise of redemption rights until HVII liquidates or they are able to sell their shares
in the open market.

The
ability of HVII’s public shareholders to exercise redemption rights with respect to a large number of its shares may not allow
HVII to complete the most desirable business combination or optimize its capital structure.

At
the time HVII enters into an agreement for its initial business combination, it will not know how many shareholders may exercise their
redemption rights, and therefore will need to structure the transaction based on its expectations as to the number of shares that will
be submitted for redemption. If HVII’s initial business combination agreement requires it to use a portion of the cash in the trust
account to pay the