Company: HVIIR
Filing Date: 2025-12-23
Form Type: S-4
Source: 0001493152-25-029121
Chunk: 242

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-12-23
Form: S-4
Chunk 242
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 otherwise be tax-deferred. The following discussion assumes the Domestication will qualify as an F Reorganization, and as such, Section 367(b) of the Code will generally apply to U.S. Holders on the date of the Domestication.

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U.S. Holders Who Own 10 Percent or More of HVII

Subject to the discussion below under the section entitled “ — 4. PFIC Considerations”, a U.S. Holder who on the date of the Domestication that actually or constructively owns 10% or more of the total combined voting power of all classes of HVII stock entitled to vote or 10% or more of the total value of all classes of HVII stock (a “10% U.S. Shareholder”) must include in income as a deemed dividend deemed paid by HVII the “all earnings and profits amount” attributable to the HVII Class A Ordinary Shares it directly owns within the meaning of Treasury Regulations under Section 367 of the Code. Complex attribution rules apply in determining whether a U.S. Holder is a 10% U.S. Shareholder and all U.S. Holders are urged to consult their tax advisors with respect to these attribution rules.

A 10% U.S. Shareholder’s “all earnings and profits amount” with respect to its HVII Class A Ordinary Shares is the net positive earnings and profits of HVII (as determined under Treasury Regulations under Section 367 of the Code) attributable to such HVII Class A Ordinary Shares (as determined under Treasury Regulations under Section 367 of the Code) but without regard to any gain that would be realized on a sale or exchange of such HVII Class A Ordinary Shares. Treasury Regulations under Section 367 of the Code provide that the “all earnings and profits amount” attributable to a shareholder’s stock generally is determined according to the principles of Section 1248 of the Code. In general, Section 1248 of the Code and the Treasury Regulations thereunder provide that the amount of earnings and profits attributable to a block of stock (as defined in Treasury Regulations under Section 1248 of the Code) in a non-U.S. corporation is the ratably allocated portion of the non-U.S. corporation’s earnings and profits generated during the period the shareholder held the block of stock.

Accordingly, under Treasury Regulations Section 1.367(b)-3(b)(3), a 10% U.S. Shareholder should be required to include in income as a deemed dividend the “all earnings and