Atlantic International Corp. Form 8-K Filing

Atlantic International Corp. has entered into a Securities Purchase Agreement with an institutional investor for the sale of 5,600 shares of Series B 5% Convertible Preferred Stock and accompanying warrants. The aggregate gross purchase price is $5,600,000, with net proceeds of $5,565,000 after expenses. The company intends to use these proceeds for working capital and general corporate purposes. The Preferred Stock has a stated value of $1,070 per share, is convertible into common stock at an initial conversion price of $4.38, and pays a 5% annual dividend. The company has the option to redeem the preferred stock under certain conditions. The agreement also includes provisions for the investor's participation in future financings and indemnification for the company. The filing details the terms of the Preferred Stock, including its senior ranking to common stock, conversion rights, optional redemption, and rights upon a fundamental transaction. Warrants were also issued, allowing the purchase of additional preferred stock.