Company: ATLN
Filing Date: 2025-12-05
Form Type: S-3
Source: 0001213900-25-118830
Chunk: 42

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-12-05
Form: S-3
Chunk 42
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 entirely qualified by reference to our Charter.

General

At
the time of issuance, the Preferred Stock will be fully paid and non-assessable and have no preemptive, conversion or exchange rights
or rights to cumulative voting. The Preferred Stock and all other preferred stock that we may issue from time to, if any, are senior as
to dividends and distributions to our Common Stock. We may issue additional series of preferred stock in the future. The Original Issue
Price of Preferred Stock shall be a five (5%) percent discount to the agreed upon price per share of Preferred Stock (as adjusted for
any stock dividends, combinations, splits, recapitalizations and the like with respect to such shares).

Dividends

Holders
of our Preferred Stock are entitled to receive dividends “in kind” per share in an amount equal to 5% per annum, or the dividend
rate. [In addition, in the event a cash dividend or other distribution in cash is declared on shares of our Common Stock, holders of our
Preferred Stock will be entitled to receive an additional amount equal to the dividend payable on the applicable number of shares of the
Preferred Stock if such shares of Preferred Stock had been converted to Common Stock.

Dividends
payable at the dividend rate will accrue and be cumulative. Dividends that are payable on the Preferred Stock on any Dividend Payment
Date shall be payable to holders of record of the Preferred Stock as they appear on the stock register of the Company on the record date
for such dividend.

Dividends
on our Preferred Stock will be computed on the basis of a 360-day year consisting of twelve 30-day months.

Voting Rights

Except
for matters provided in the Charter or Bylaws, or as otherwise required by applicable law, the holders of Preferred Stock will NOT be
entitled to vote on any matter submitted to a vote of stockholders of the Company

Conversion

Each
share of Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the
payment of additional consideration by the holder thereof, into such number of fully paid and nonassessable shares of Common Stock of
the Company at a Preferred Stock Conversion Price (as defined below) in effect at the time of conversion. The Preferred Stock Conversion
Price shall initially be equal to 125% of the closing price of Common Stock on the day of pricing. Such initial Conversion Price, and
the rate at which shares of Preferred