Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 167

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 167
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 consulted with Atlantic International’s management and consultants and legal and financial advisors, reviewed a significant amount of information, and reviewed a number of factors, including the following material facts (not in any relative order of importance). • Enhanced scale and liquidity with potential for premium valuation: With a pro forma revenue base of approximately $620 million, Atlantic International’s Board of Directors believes that Atlantic International and Staffing 360 stockholders will benefit from the scale, liquidity and capital alternatives of a significantly larger combined company. Additionally, larger capitalized human capital management and workforce solutions companies have historically carried premium valuations. 91 • Improved cost structure :Atlantic International expects that the combination of Atlantic International and Staffing 360 will create cost efficiencies and decrease Atlantic International’s operating expense ratio, leading to improved profitability. Atlantic has identified opportunities to further enhance operating cost efficiencies in the year following the close of the transaction. • Benefit from a more diversified customer base: Atlantic International’s broad customer base has grown organically and through M&A and is positioned to withstand periods of market volatility. Together with Staffing 360, the combined company will service over 1,500 customers, with no customer generating more than 5% of combined revenues. •the historical and current information concerning Staffing 360’s business, including its financial performance and condition, operations, and management; •the likelihood that the Merger would be consummated on a reasonably timely basis, including the likelihood that the Merger would receive all necessary approvals; •the terms and conditions of the Merger Agreement, including without limitation the following: •the expectation that the Merger will be treated as a reorganization for U.S. federal income tax purposes, with the result that in the Merger, Staffing 360’s stockholders, warrant holders and optionholders would generally not recognize taxable gain or loss for U.S. federal income tax purposes; •the structure of the Merger and the level of certainty as to the percentage of the total shares of common stock of the Atlantic International that current Staffing 360 and Atlantic International stockholders would own after the Merger; •the conclusion of Atlantic International’s Board of Directors that Atlantic International’s remedies in the event of a breach or termination of the Merger Agreement by Staffing 360 were sufficient to protect the interests of Atlantic International’s and its stockholders; and •the view that the parties’ representations, warranties and covenants, and the conditions to their respective obligations, are reasonable under the circumstances. In the course of its deliberations, Atlantic International’s board