Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 356

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 356
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 fair value of the Redemption Price was calculated as $ 8,265utilizing the CRR Binomial Lattice model. The difference in fair value was $ 735is accounted as a deferred financing charge and will be amortized over the life of the term. The quarterly dividends will be reflected as interest expense. On July 31, 2023, the Company, Chapel Hill Partners, L.P. (“Chapel Hill”) and Jean -PierreSakey (“Sakey”) entered into an agreement in connection with the Headway Purchase Agreement. F-63

STAFFING 360 SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(All amounts in thousands, except share, per share and stated value per share)
(UNAUDITED) NOTE 7 — DEBT (cont.) Pursuant to the agreement, if on or prior to September 30, 2023, the Company does not redeem the Series H Preferred Stock and remit the Contingent Payment (as defined in the Headway Purchase Agreement), then the Company shall make the Contingent Payment in the amount of $ 5,000, as set forth in the Purchase Agreement, in five equal installments of $ 1,000each, less $ 134per installment to be paid to third -partiesto satisfy existing incentives and fees due, with such fees and incentive payments to be allocated at the discretion of Chapel Hill and Sakey (the “Contingent Payment Installments”), with such Contingent Payment Installments to be made on or before December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024 (each such date, a “Contingent Installment Payment Date”). On each Contingent Installment Payment Date, the Company shall additionally redeem 100,000shares of Series H Preferred Stock at a price per share equal to $ 0.0000001per share. The contingent payments due on December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024 were not paid. Pursuant to the Letter Agreement, the Company also had no obligation to pay the Preferred Dividend (as defined in the Certificate of Designation of Preferences, Rights and Limitations of Series H Convertible Preferred Stock