ARCPOINT REACHES AGREEMENT TO SELL 68% OWNERSHIP STAKE IN NON-CORE ASSET
Greenville, South Carolina, Dec. 30, 2024 (GLOBE NEWSWIRE) — ARCpoint Inc. (TSXV: ARC) (the “Company” or “ARCpoint”) reports that it has entered into an agreement for the sale (the “Transaction”) of its 68% share ownership interest in Achieve Behavioral Health Greenville LLC, (“Achieve”) for total consideration of US$480,000. From the total consideration amount, the buyer of ARCpoint’s interest in Achieve will deduct US$120,000 in recognition of net amounts owing between the two parties and make a total cash payment of US$360,000 to ARCpoint. Achieve is a South Carolina company that operates under the brand name Vertical Treatment Centers and provides drug and alcohol addiction treatment services.
ARCpoint President and CEO John Constantine, commented, “The sale of this non-core asset further streamlines our operations and will provide us with working capital funds to advance technology platform integration work so that we may begin on-boarding the CRESSO Brands franchisee locations not currently on our MyARCpointLabs technology platform.”
On Aug. 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. ALTN, based in Atlanta, Ga., was founded in 1992 and at the time of the Aug. 20, 2024 transaction, had more than 235 United States 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 became the largest franchise network of its kind in the United States. At the time of the CRESSO transaction, ALTN and ARCpoint also agreed to make ARCpoint’s MyARCpointLabs technology platform the systems choice for CRESSO brand franchisees.
The Transaction is a Non-Arm’s Length Transaction in accordance with the policies of the TSXV. The Transaction also constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Notwithstanding the foregoing, the directors of the Company have determined that the Transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(b) of MI 61-101.
About ARCpoint Inc.
ARCpoint is an innovative US-based health care company 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.
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. Forward-looking information necessarily involves 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.
