Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 201

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 201
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 Boone, LLP, counsel to Staffing 360, that it is more likely than not that the Merger qualify as a “reorganization.” However, no assurance can be given that the IRS will accept such tax treatment. Moreover, such opinion 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. Neither Atlantic International nor Staffing 360 intends to obtain a ruling from the IRS with respect to the tax consequences of the Merger. In addition, it is not a closing condition to the completion of the Merger that Staffing 360 or Atlantic International receive an opinion of counsel that the Merger qualify as a reorganization. If the IRS were to successfully challenge the “reorganization” status of the Merger, the tax consequences would differ materially from those described in this proxy statement/prospectus, as discussed below under “ — Tax Consequences if the Merger Fail to Qualify as a “Reorganization”.” You are urged to consult with your tax advisors regarding the proper U.S. federal income tax treatment of the Merger, including with respect to their qualification as a “reorganization” within the meaning of Section 368(a) of the Code in light of the uncertainties discussed above. Tax Consequences if the Merger Qualify as a “Reorganization” Assuming that the Merger, taken together, qualifies as a “reorganization” within the meaning of Section 368(a) of the Code, generally, a U.S. holder of Staffing 360 common stock that exchanges its Staffing 360 common stock for Atlantic International common stock in the Merger: •will not recognize any gain or loss upon the exchange of Staffing 360 common stock for Atlantic International common stock in the Merger; 114 •will have a tax basis in the Atlantic International common stock received in the Merger equal to the tax basis of the Staffing 360 common stock surrendered in exchange therefor; and •will have a holding period for the Atlantic International common stock received in the Merger that includes its holding period for its Staffing 360