Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 176

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 176
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 diluted shares outstanding of the combined company including equity awards (using the treasury stock method)) immediately following the completion of the Merger, and holders of shares of Staffing 360 common stock as of immediately prior to the completion of the Merger would hold, in the aggregate, approximately 9.4% of the issued and outstanding shares of common stock of Atlantic International excluding equity awards, outstanding options, warrants,

98 RSUs and restricted share awards immediately following the completion of the Merger. The actual equity ownership of Atlantic International stockholders and Staffing 360 stockholders in Atlantic International immediately following the Merger will depend on the number of shares of Atlantic International common stock and Staffing 360 common stock outstanding immediately prior to the Merger. Tax Treatment of the Merger The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a)(2)(E) of the Code, but no assurance can be given that the Merger will so qualify, that the IRS will not challenge such qualification or that a court will not sustain such a challenge. In connection with the filing of the registration statement of which this proxy statement/prospectus is a part, Haynes and Boone, counsel to Staffing 360, has delivered an opinion to the effect that it is more likely than not that the Merger will qualify as a “reorganization.” Such opinion of counsel is based on, among other things, certain factual representations made by Staffing 360 and Atlantic International and certain assumptions, all of which must be consistent with the state of facts existing at the time of the Merger. If any of these representations and assumptions are, or become, inaccurate or incomplete, such opinion may be invalid. An opinion of counsel represents counsel’s best legal judgment and is not binding on the IRS or the courts, which may not agree with the conclusions set forth in such opinion, including with respect to the uncertainties referred to above and discussed in more detail in the section titled “ U.S. Federal Income Tax Consequences of the Merger.” The closing of the Merger is not conditioned upon achieving, or receiving a ruling from the IRS or opinion of counsel with respect to, the qualification of the Merger as a “reorganization.” If the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code for any reason, the exchange of Staffing 360 common stock for Atlantic International common stock in the Merger will be a taxable transaction for U.S. federal income tax purposes