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Greenville, South Carolina, Dec. 27, 2023 (GLOBE NEWSWIRE) — ARCpoint Inc. (TSXV: ARC) (the “Company” or “ARCpoint”) announces that it has entered into an agreement dated December 24, 2023 (the “Agreement”) with an arm’s length creditor (the “Creditor”) to restructure US$1,061,718.75 in indebtedness plus accrued and unpaid interests (the “Indebtedness”) owed to the Creditor by ARCpoint Franchise Group, LLC (“AFG”), a wholly owned subsidiary of the Company. Pursuant to the terms of the Agreement, the Company agreed to, among other things, pay US$350,000 of the Indebtedness to the Creditor on January 2, 2024, and to issue 1,500,000 Class A Subordinate Voting Shares at a deemed price of CDN$0.12 per share to settle CDN$180,000 of the Indebtedness. The Company and the Creditor further agreed that the remaining Indebtedness shall bear a simple interest at a rate of 9.6% per annum for a period of two years and shall cease to accrue after the date that is two years from the date of the Agreement. After giving effect to the aforementioned payment, share issuance and 2-year interest accrual, the parties agreed that the total amount of indebtedness owed by AFG to the Creditor will be $833,856.81. The shares to be issued to the Creditor pursuant to the Agreement will be subject to a four-month hold period pursuant to the applicable Canadian securities laws and one-year hold period pursuant to the applicable U.S. securities laws.
About ARCpoint Inc.
ARCpoint is a leading US-based franchise system providing drug testing, alcohol screening, DNA and clinical lab testing, corporate wellness programs, and employment and background screening, among other services. The Company 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: [email protected]
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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