Shares of Staffing 360 Solutions jumped after the company provided additional information regarding its merger agreement with Atlantic International and one of its subsidiaries, A36 Merger Sub.

The stock climbed 87% to $4.24 in premarket trading Tuesday. Shares ended lower by 0.7% at $2.28 on Monday, leaving them down 41% in the last year.

The provider of based staffing services said after the bell that each share of its Series H and Series I preferred stocks will be canceled upon completion of the merger, converting into the right to receive a number of shares of validly issued, fully paid and nonassessable shares of Atlantic common stock.

Prior to the deal's closing, Staffing 360 will enter an agreement with Jackson Investment Group, under which all interest accrued and payable to Jackson will be waived or forgiven, and the principal amount of the loan will be converted into 5.6 million shares of Series I stock, according to a Securities and Exchange Commission filing.

Staffing 360 and Atlantic announced their merger agreement in November. At that time, the companies said Atlantic would acquire all outstanding shares of Staffing 360's common stock, with those shareholders receiving about 1.2 Atlantic shares for each Staffing 360 share. The transaction was expected to close within 90 days.