Company: ATLN
Filing Date: 2025-01-13
Form Type: 8-K
Source: 0001213900-25-003018
Chunk: 0

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-13
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01 Entry Into a Material Definitive Agreement

On January 7, 2024, Atlantic International Corp.
(“ Atlantic” or the “ Company”) entered into a First Amendment (the “ Amendment”) to Agreement and Plan
of Merger (the “ Merger Agreement”), a copy of which has been filed as Exhibit 2.1 to this Form 8-K. The Merger Agreement was
entered into as of November 1, 2024 and was filed on Form 8-K on November 7, 2024.

The Amendment provides for:

1. The
elimination of dissenters’ rights as the Merger is now a share-for-share exchange and has eliminated the payment by the Company
of any cash consideration.

2. The
definition of “ Merger Consideration” has been revised to include the conversion of Staffing 360 Solutions Inc (“ STAF”)
Series H Preferred Shares and Series I Preferred Shares into shares of the Company’s Common Stock at their respective Exchange Ratios.

3. The
agreement with Jackson Investment Group (“ JIG”) shall provide for the conversion of all accrued interest and the principal
amount of indebtedness to JIG into 5,600,000 shares of Series I Preferred Stock which is convertible into an equal number of shares of
Atlantic Common Stock.

4. The
agreements to convert Earned Certain Cash Payments into 5,000,000 shares of Series H Preferred Stock of STAF which, in turn, are converted
into 3,500,000 shares of Atlantic Common stock and shall waive any interest/dividends or payments due related solely to Series H Shares.

5. The
period of exclusivity for the Merger was deleted.

6. The
number of shares of Atlantic Common Stock increased from 50,146,738 to 57,338,135 and the number of restricted stock units increased from
1,803,583 to 4,903,052, or an aggregate of 62,241,187 shares of Common Stock.

7. The
Termination Date fee the Merger was extended from December 31, 2024, to March 31, 2025.

8. The
definition of Exchange Ratio expanded from1.202 for STAF 360 Common Stock to add 0.25 for Series H Preferred Stock and 1.00 for Series
I Preferred Stock.

9. Except
as expressly provided in the Amendment, the Merger Agreement remains in full force