Company: ATLN
Filing Date: 2025-07-08
Form Type: 424B3
Source: 0001213900-25-062079
Chunk: 11

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-07-08
Form: 424B3
Chunk 11
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 collateral
for the repayment of such loan. In the event Lyneer or IDC is unable to repay their joint and several indebtedness, or there occurs any
other event of default under the revolving credit facility or the term loan, including, but not limited to, completion of an Initial Capital
Raise (as defined), the lenders under the revolving credit facility and the term loan will be able to foreclose upon the equity and assets
of Lyneer, which could result in a loss of your investment. Notwithstanding the fact that IDC and Prateek Gattani have agreed to repay
the joint and several indebtedness under the Allocation Agreement, IDC has been unable to repay such indebtedness and Lyneer may be required
to make such payments. In such event, IDC would then be required to repay Lyneer for the amounts paid on IDC’s behalf. The failure
of IDC to repay the joint and several indebtedness would be expected to have a material adverse impact on Lyneer’s financial condition
and its long-term viability and the market price of our common stock and there is no guarantee that the lenders will continue to work
with the Company amicably.

We will be required to raise additional funds prior to the maturity date of the Merger Note to repay such note and our other outstanding indebtedness and to support our future capital needs.

We believe our cash on hand
and cash generated from operations, will not be sufficient to pay the Merger Note and our other outstanding indebtedness in full when
due and to fund our ongoing operations. As stated above, Lyneer has been in default under its principal credit facilities and outstanding
promissory notes and any future defaults by Lyneer under its credit facilities could have a material adverse impact on Lyneer’s
financial condition and long-term viability. We will be required to seek financing to pay or refinance our other outstanding indebtedness.

We cannot assure you that
we will be able to obtain additional funds on acceptable terms, or at all. Our ability to obtain additional financing will be subject
to market conditions, our operating performance and investor sentiment, among other factors. If we raise additional funds by issuing equity
or equity-linked securities, our stockholders may experience dilution. Future debt financing, if available, may involve covenants restricting
our operations or our ability to incur additional debt. Any debt or equity financing may contain terms that are not favorable to us or
our stockholders. To the extent that we raise additional capital through the