Oh, they'll hatch. Of course it's not guaranteed, but the baby banded cat they have in there right now ... was another egg a few weeks ago.
Bear in mind though, even though they are some of the smaller sharks, you still need a LARGE dedicated setup for them as they progress into adulthood.
Scott Michael recommends something like the tank size needs to be 1-1.5 times their length for depth (i.e. front-to-back) and at least 2-3 times their length for width. Factor in most small sharks are still ~30"-40", and factor in your favourite tank height, then do the math, you're talking about a >120g gallon minimum tank size (and that's "minimum"). Don't quote me on the exact specifics, but instead, do a search on "Scott Michael" if you're interested in learning more. He's written numerous articles (both online and print) plus has a book "Sharks and Rays."
Bottom line, you gotta know what you're doing. They get huge. And how do find a home for a 4' fish (i.e., you don't). The 1.5-2 and 2-3 "length factors" (and don't quote me on the exact numbers but it's something like that) are based on the fact that the fish needs that to be able to turn around comfortably in the tank. And the tank should ideally be unencumbered with too much decorations/live rock/etc.
Very cool animals though. Very cool.
In my "ultimate long term plans" I am hoping to one day have a setup for an Epaulette shark or perhaps a pair. This is WAY down the road.
Epaulettes are perhaps the smallest sharks, topping out at somewhere near the 28"-30" range if I am not mistaken.