Staffing 360 Solutions (STAF) shares were up 83% in premarket activity Tuesday, a day after the company said an amendment to its merger agreement with Atlantic International will enable it to convert certain borrowings into equity.

According to the first amendment, Staffing 360 expects to sign an agreement with Jackson Investment Group that will, among other things, convert the principal amount of a loan into 5.6 million series I preferred shares. Jackson Investment has agreed to a one-year lock-up period as part of the settlement agreement with Staffing 360.

Similarly, Staffing 360 expects to convert any amounts owed under earned contingent cash payment into 5 million series H preferred shares.

As agreed under the amendment, the series I and H shares will convert into a right to receive shares of Atlantic's common stock based on an applicable exchange ratio after the merger closes, Staffing 360 said in a regulatory filing late Monday.