Company: ATLN
Filing Date: 2025-07-08
Form Type: 424B3
Source: 0001213900-25-062079
Chunk: 15

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-07-08
Form: 424B3
Chunk 15
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 liquidity position, which would limit its ability to grow its business.

Covenants in Lyneer’s
debt instruments impose operating and financial restrictions on Lyneer. These restrictions prohibit or limit its ability to, among other
things:

| ● | pay cash dividends to its stockholders, subject to certain limited exceptions; |

| ● | redeem or repurchase its common stock or other equity; |

| ● | incur additional indebtedness; |

| ● | permit liens on assets; |

| ● | make certain investments (including through the acquisition of stock, shares, partnership or limited liability 
 company interests; any loan, advance or capital contribution);                                                 |

| ● | sell, lease, license, lend or otherwise convey an interest in a material portion of our assets; and |

| ● | sell or otherwise issue shares of its common stock or other capital stock subject to certain limited exceptions. |

Lyneer’s failure to
comply with the restrictions in its debt instruments could result in events of default, which, if not cured or waived, could result in
Lyneer being required to repay these borrowings before their due date. The holders of Lyneer’s debt may require fees and expenses
to be paid or other changes to terms in connection with waivers or amendments. If Lyneer is forced to refinance these borrowings on less
favorable terms, Lyneer’s results of operations and financial condition could be adversely affected by increased costs and rates.
In addition, these restrictions may limit its ability to obtain additional financing, withstand downturns in its business or take advantage
of business opportunities.

Lyneer faces risks associated with litigation and claims.

Lyneer and certain of its
subsidiaries may be named as defendants in lawsuits from time to time that could cause them to incur substantial liabilities. Lyneer and
certain of its subsidiaries are currently defendants in several actual or asserted class and representative action lawsuits brought by
or on behalf of their current and former employees alleging violations of federal and state law with respect to certain wage and hour
related matters, among other claims. The various claims made in one or more of such lawsuits include, among other things, the misclassification
of certain employees as exempt employees under applicable law, failure to comply with wage statement requirements, failure to compensate
certain employees for time spent performing activities related to the interviewing process, and other related wage and hour violations.
Such suits seek, as applicable, unspecified amounts for unpaid overtime compensation, penalties, and other damages