Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 60

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 60
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ance agreement and is in the process of formalizing the agreement with its lenders. Each share of our common stock initially entitles its holder to one vote on all matters presented to stockholders generally. Accordingly, IDC our principal stockholder, owns approximately forty -three(43%) percent of our outstanding shares, and may be able to control the election and removal of the majority of our directors and thereby determine corporate and management policies, including potential mergers or acquisitions, payment of dividends, asset sales, amendment of the articles and by -lawsand other significant corporate transactions of our company for so long as it retains significant ownership. This concentration of ownership may delay or deter possible changes in control of our company, which may reduce the value of an investment in our common stock. So long as IDC continues to own a significant amount of the voting power, even through such amount is less than 50% they will continue to be able to strongly influence or effectively control decisions of our company. 20 Our principal stockholder, has defaulted on its debt obligations which could result in a change of control of our company. On August 31, 2021, Lyneer and IDC as co -borrowersentered into a Term Note in the amount of $30,300,000 (the “Term Note”) with an investment management firm as administrative agent and certain lenders. Our principal stockholder, IDC owns approximately forty -three(43%) percent of our issued and outstanding common stock. In order to secure the current joint and several debt obligations of IDC and Lyneer until such time as such indebtedness can be restructured or repaid, we pledged to a second secured lender our equity ownership of Lyneer and IDC pledged to the lender under the Term Note its equity ownership in our Company. IDC defaulted on its debt obligations under the joint and several debt obligations of IDC and Lyneer under the Term Note. IDC has agreed on the terms of a forbearance agreement and is in the process of formalizing the agreement with its lenders. Any foreclosure upon our equity in Lyneer and/or IDC’s common stock of our Company by the lender, or any sales by the lender of IDC’s common stock of our Company, may have an adverse effect on the market price of our common stock resulting in a diminution in the value of your investment. See “Certain Beneficial Owners of Atlantic International Common Stock.” Lyneer operates in an intensely competitive and rapidly changing business environment, and there is a substantial risk that its services could become obsolete or uncompetitive.