Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 495

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 495
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 Stock. 3. A dditional Pro Rata Shares . Notwithstanding anything to the contrary in the Merger Agreement, if the average of the last closing price of Atlantic Common Stock (as reported on the Nasdaq Stock Market LLC) over the five (5) trading days immediately preceding the date of the Closing (the “ Average Closing Price ”) is below $5.00, then Atlantic shall issue to Jackson such number of additional shares of Atlantic Common Stock equal to (i) 5,600,000 multiplied by the quotient of $5.00 and the Average Closing Price, minus (ii) 5,600,000 (the “ Pro Rata Shares ”), which such Pro Rata Shares, if issued, shall be subject to the Lock-Up Period (as defined in the Lock-Up Agreement). 4. Company Representations . a) Authority; Authorization; Execution . The Company has all requisite corporate power and authority to execute and deliver this Agreement and any related documents to which the Company is a party, to perform the Company’s obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution, delivery, and performance by the Company of this Agreement and any related documents to which the Company is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by all requisite corporate action on the part of the Company. This Agreement and each related document to which the Company is a party has been duly executed and delivered by the Company. b) Due Issuance . The shares of Company Preferred to be issued to Jackson pursuant to the conversions described in Section 2 above will, on or prior to the Effective Time, have been validly issued free and clear of all encumbrances (other than those arising under securities laws), and without violating any purchase or call option, right of first refusal, subscription right, preemptive right, encumbrance or any similar right of any other person. c) Enforceability . This Agreement and each related document to which the Company is a party constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, receivership, and similar Laws from time to time in effect affecting the enforcement of creditors’ rights generally and general equitable principles. d) Conflicts; Consents of Third Parties . The execution and delivery by the Company of this Agreement and any Ancillary Documents to