Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 202

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 202
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 common stock surrendered in exchange therefor. The Atlantic International common stock received in the Merger by a U.S. holder that acquired different blocks of Staffing 360 common stock at different times or at different prices will be allocated to each block of Staffing 360 common stock of such U.S. holder, and the basis and holding period of such shares of Atlantic International common stock will be determined using a block for block approach and will depend on the basis and holding period of each block of Staffing 360 common stock exchanged for such Atlantic International common stock. Tax Consequences if the Merger Fail to Qualify as a “Reorganization” If the Merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, a U.S. holder of Staffing 360 common stock generally would recognize gain or loss for U.S. federal income tax purposes on each share of Staffing 360 common stock surrendered in the Merger in an amount equal to the difference between the fair market value, at the time of the Merger, of the Atlantic International common stock received in the Merger and such holder’s adjusted tax basis in the Staffing 360 common stock surrendered in the Merger. Gain or loss must be calculated separately for each block of Staffing 360 common stock exchanged by such U.S. holder if such blocks were acquired at different times or for different prices. Any gain or loss recognized generally would be capital gain or loss, and generally would be long -termcapital gain or loss if the U.S. holder’s holding period in a particular block of Staffing 360 common stock is more than one year at the effective time of the Merger. Long -termcapital gain of certain non -corporatetaxpayers, including individuals, generally is taxed at reduced U.S. federal income tax rates. The deductibility of capital losses is subject to limitations. A U.S. holder’s tax basis in shares of Atlantic International common stock received in the Merger would be equal to the fair market value thereof as of the effective time of the Merger, and such U.S. holder’s holding period in such shares would begin on the day following the closing of the Merger. THIS SUMMARY DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OF THE POTENTIAL TAX CONSEQUENCES RELATING TO THE MERGER, AND IS NOT, AND IS NOT INTENDED TO BE, TAX ADVICE. ALL STOCKHOLDERS ARE STRONGLY ADVISED AND ARE EXPECTED TO CONSULT