Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 475

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 475
---
 continue as the surviving entity and become a wholly owned subsidiary of Parent. As a result of the merger, each issued and outstanding share of Company common stock, par value $0.0001, (“Company Common Stock”), other than any Excluded Shares and Dissenting Shares (as defined in the Merger Agreement), will be converted into the right to receive the Merger Consideration. “Merger Consideration” means a fixed exchange ratio of 1.2021 validly issued, fully paid, and nonassessable shares of common stock, par value $0.00001, of Parent (“Parent Common Stock”) for each issued and outstanding share of Company Common Stock, with any resulting fractional shares to be rounded to the nearest whole share. In instances where our analyses require the market value of Parent Common Stock to analyze the fairness of the Merger Consideration, we use the October 25, 2024 closing stock price of one share of Parent Common Stock, $4.91. The terms and conditions of the Merger are more fully set forth in the Merger Agreement and it is our understanding that the Company, contingent upon Board approval, intends to enter into the Merger Agreement on or before November 1, 2024. According to the Company’s 10 -Qfiling for the period ended September 28, 2024 the Company faces serious liquidity issues and indebtedness. The Company’s consolidated financial statements as of September 28, 2024 show an accumulated deficit of roughly $133.6 million and a working capital deficit of roughly $48.0 million. Total gross debt as of September 20, 2024 was roughly $19.6 million and cash on hand was approximately $813 thousand. The 10 -Qfiling as of September 28, 2024 assume that the Company will continue as a going concern but note that the going concern assumption relies upon no material, adverse developments in the Company’s business, liquidity, and capital requirements, and that the Company’s credit facilities with its lender will remain available to the Company. A large component of the Company’s indebtedness consists of $10.116 million in notes (the “Jackson Notes”) issued to Jackson Investment Group, LLC “Jackson”) which are due and payable on January 13, 2025. The Company is currently not in compliance with the covenants included in the Jackson notes. As part of the proposed Merger, the Jackson Notes will convert to a total of 4.0 million shares of Parent