ARCpoint Inc. (TSXV: ARC) (the “
Company” or
“
ARCpoint”) is pleased to provide the following
corporate update and will host a conference call at 4:45pm Eastern
time, Wednesday, September 4, 2024 to review the Company’s Q2
financial results for the period ending June 30, 2024 as well as to
discuss new initiatives and recent events.
The dial-in number for the conference call is as follows:
Canada / USA Toll Free
1-844-763-8274International
Toll +1-647-484-8814
Callers should dial in 5 – 10 min prior to the scheduled start
time and ask to join the ARCpoint call:
ARCpoint President and CEO, John Constantine
commented “The recently announced transaction with Any Lab Test Now
is having a transformational effect on our Company. In addition to
significantly expanding our distribution footprint and the
potential users for our MyARCpointLabs technology platform, it
allows us to reduce our costs and focus our resources on developing
new tools and services to drive more revenue and deepen customer
relationships for CRESSO Brands, its franchisees, and other
partnerships.”
On August 20, 2024, the Company announced that
it had entered into a transaction with Any Lab Test Now (“ALTN”) to
bring together the franchise operations of both ALTN and ARCpoint
into a new joint venture company, CRESSO Brands, LLC. (“CRESSO”).
Any Lab Test Now, based in Atlanta, Georgia, was founded in 1992
and at the time of the August 20, 2024 transaction, had more than
235 U.S. franchise locations, providing direct access to clinical,
DNA, and drug and alcohol lab testing services, as well as
phlebotomy and other specimen collection services, through its
retail storefront business model. When combined with the more than
135 ARCpoint Franchise Group locations, also at the time of the
transaction, CRESSO is now the largest franchise network of its
kind in the United States.Mr. Constantine continued, “We have begun
to utilize artificial intelligence to develop new tools and
services that we believe will make it easier for consumers to
better understand their diagnostic testing results, thus allowing
them to feel more comfortable about the choices they make with
regard to their health and wellness. We are also moving forward
with improvements to better integrate telehealth doctors into our
system to both benefit consumers and drive more business into the
healthcare ecosystem we are creating.”
As the result of contributing its franchise
operations into CRESSO in exchange for a 29.5% interest in CRESSO,
ARCpoint has reduced its headcount to 6 full-time equivalent
employees and reduced approximately $487K in annualized salary
costs and $150K in annualized G&A costs.
As part of this corporate evolution and in
addition to the cost reduction above, the Company has enacted
annualized cash salary reductions of approximately $290K for the
remaining managers and issued stock options grants. Accordingly,
the Company announces that today, it has granted, in aggregate,
4,720,000 options (“Options”) to certain directors, employees and
consultants of the Company pursuant to its omnibus incentive plan
(the “Omnibus Plan”). Each Option is exercisable to acquire one
Class A Subordinate Voting Share of the Company (“SVS”) at a price
of $0.12 per SVS with a term of ten years from the date of issue
(the “Issue Date”). The Options vest quarterly in eight equal
installments over two years following the Issue Date. These grants
were made to appropriately award the contributions of the recipient
directors, employees and consultants of ARCpoint and its
subsidiaries and to encourage them to continue contributing to
ARCpoint’s success.
The Company also reports that given the CRESSO
transaction, it has decided at this time not to pursue continuance
under the Business Corporations Act (British Columbia) as described
in the Company’s June 4, 2024 Supplement to its Management
Information Circular dated May 10, 2024 and passed by shareholders
at the Company’s General and Special meeting of security holders
June 26, 2024. Accordingly, the Company’s name will remain ARCpoint
Inc., and the Company will continue under the Canadian Business
Corporations Act for the time being.
About ARCpoint Inc. ARCpoint is
a leading US-based franchise system that leverages technology along
with brick-and-mortar locations to give businesses and individual
consumers access to convenient, cost-effective healthcare
information and solutions with transparent, up-front pricing, so
that they can be proactive and preventative with their health and
well-being. ARCpoint is based in Greenville, South Carolina, USA.
ARCpoint Franchise Group LLC, formed under the laws of the state of
South Carolina in February 2005, is the franchisor of ARCpoint Labs
and supports over 130 independently owned locations. ARCpoint sells
franchises to individuals throughout the United States and provides
support in the form of marketing, technology and training to new
franchisees. ARCpoint Corporate Labs LLC develops corporate-owned
labs committed to providing accurate, cost-effective solutions for
customers, businesses and physicians. AFG Services LLC serves as
the innovation center of the ARCpoint group of companies as it
builds a proprietary technology platform and a physician network to
equip all ARCpoint labs with best-in-class tools and solutions to
better serve their customers. The platform also digitalizes and
streamlines administrative functions such as materials purchasing,
compliance, billing and physician services for ARCpoint franchise
labs and other clients.
For more information, please contact:
ARCpoint Inc.Jason Tong, Chief Financial
OfficerPhone : (604) 889-7827E-mail : invest@arcpointlabs.com
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION :
Forward-Looking Information – this news
release contains “forward-looking information” within the meaning
of applicable Canadian securities laws which are based on
ARCpoint’s current internal expectations, estimates, projections,
assumptions and beliefs and views of future events. Forward-looking
information can be identified by the use of forward-looking
terminology such as “expect”, “likely”, “may”, “will”, “should”,
“intend”, “anticipate”, “potential”, “proposed”, “estimate” and
other similar words, including negative and grammatical variations
thereof, or statements that certain events or conditions “may”,
“would” or “will” happen, or by discussions of
strategy.
The forward-looking information in this
news release is based upon the expectations, estimates,
projections, assumptions and views of future events which
management believes to be reasonable in the circumstances.
Forward-looking information includes estimates, plans,
expectations, opinions, forecasts, projections, targets, guidance
or other statements that are not statements of fact.
Froward-looking information necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse industry events; loss of markets;
future legislative and regulatory developments; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms; the
ability of the Company to implement its business strategies, the
COVID-19 pandemic; competition and other risks.
Any forward-looking information speaks
only as of the date on which it is made, and except as required by
law, the Company does not undertake any obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for the Company to predict all
such factors. When considering the forward-looking information
contained herein, readers should keep in mind the risk factors and
other cautionary statements in the Company’s disclosure documents
filed with the applicable Canadian securities regulatory
authorities on SEDAR at www.sedar.com. The risk factors and other
factors noted in the disclosure documents could cause actual events
or results to differ materially from those described in any
forward-looking information.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this Press release.
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