ARCPOINT PROVIDES CORPORATE UPDATE ON BENEFITS OF CRESSO TRANSACTION
Greenville, South Carolina, Sept. 03, 2024 (GLOBE NEWSWIRE) — 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 1-844-763-8274
International 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 Officer
Phone : (604) 889-7827
E-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.
