Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 169

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 169
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 transactions contemplated thereby. In reaching its decision, Atlantic International’s Board of Directors did not quantify or assign any relative weights to the factors considered, and individual directors may have given different weights to different factors. Atlantic International’s Board of Directors considered the factors as a whole, including discussions with, and questioning of, Staffing 360 management and Staffing 360’s outside financial and legal advisors, and considered the factors overall to be favorable to, and to support, its determination to approve and adopt the Merger Agreement, the Merger and the transactions contemplated thereby. Recommendation of Staffing 360 Board of Directors; Staffing 360’s Reasons for the Merger Staffing 360 Board of Directors considered many factors in making its decision to approve and adopt the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement, and to recommend that its stockholders approve the Merger Agreement Adoption Proposal. In arriving at its decision, Staffing 360 Board of Directors consulted with Staffing 360’s management and scientific and technical advisors and consultants and legal and financial advisors, reviewed a significant amount of information, and reviewed a number of factors, including the following material facts (not in any relative order of importance): •if the Merger is not consummated, Staffing 360 would have to raise a significant amount of additional equity capital to comply with the continued listing on the Nasdaq Capital Market, including with respect to minimum stockholders’ equity requirement (the “Minimum Stockholders’ Equity Requirement”) pursuant to Nasdaq Listing Rule 5550(b)(1), which such rule requires listed companies to maintain stockholders’ equity of at least $2,500,000 or meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, which Staffing 360 does not currently meet. Taking into account the company’s burn rate, Staffing 360 management estimates that the Company would need to raise equity capital of as much as $25 million, to regain compliance with the Minimum Stockholders’ Equity Requirement. Such equity raise would result in significant dilution to the current stockholders of Staffing 360, reducing the pro forma ownership of the Company by current stockholders to less than 10%; •the fairness opinion of Cornerstone Valuation, which provided that, as of such date and based upon and subject to the various assumptions made, procedures followed, matters considered and qualifications and limitations set forth in such written opinion, the Merger Consideration to be received by Staffing 360 stockholders