Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 198

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 198
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ger, Staffing 360 and Jackson will enter into a Conversion Agreement and Waiver, in the form attached hereto as Annex C, to be effective immediately prior to the closing of the Merger, pursuant to which Jackson shall agree, among other things, to (i) convert the aggregate outstanding principal balance of $10,116,249 under the Jackson Notes into 5,600,000shares of Series I Preferred Stock, (ii) waive all aggregate accrued and unpaid interest under the Jackson Notes and (iii) enter into the Series I Lock -upAgreement in the form attached hereto as Annex E. Additionally, pursuant to the Conversion Agreement and Waiver, if the last closing price of Atlantic International (as reported on the Nasdaq Stock Market LLC) over the five (5) trading days immediately preceding the closing date of the Merger is below $5.00 (the “Average Closing Price”), then Atlantic International and/or members of management of Staffing 360 and of Atlantic shall issue to Jackson such number of additional shares of Atlantic International common stock equal to (i) 5,600,000 multiplied by the quotient of $5.00 and the Average Closing Price, minus (ii) 5,600,000 (the “Pro Rata Shares”), which such Pro Rata Shares, if issued, shall be subject to a one -yearlock -upperiod. 112 U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER The following discussion is a summary of the material U.S. federal income tax consequences of the Merger to U.S. holders (as defined below) of Staffing 360 common stock that exchange their Staffing 360 common stock for Atlantic International common stock in the Merger. This discussion is based on the Code, U.S. Treasury regulations promulgated thereunder, judicial decisions and published rulings and administrative pronouncements of the IRS in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could affect the accuracy of the statements and conclusions set forth in this discussion and could adversely affect a U.S. holder. There can be no assurance the IRS or a court will not take a position contrary to the discussion below regarding the tax consequences. This discussion assumes that the Merger will be consummated in accordance with the Merger Agreement and as further described in this proxy statement/prospectus. This discussion is not a complete description