Mr. Jason Tong reports

ARCPOINT ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT AND WARRANT AMENDMENTS

Arcpoint Inc. has closed its previously announced non-brokered private placement for gross proceeds of $1,004,175, through the sale of 13,389,000 Class A subordinate voting shares of the company at a price of 7.5 cents per share.

The net proceeds from the offering will be used for operational expenses and other general corporate purposes including increasing investor awareness, investor relations and marketing expenses.

In connection with the closing of the offering the company issued 670,900 finders' shares, 1,013,900 finders' warrants and paid a cash commission of $60,834 to certain arm's-length finders, including Canaccord Genuity Corp. and Haywood Securities Inc. Each finder's warrant entitles the holder thereof to purchase one share at a price of 7.5 cents per finder's warrant share until July 31, 2026.

The offering remains subject to final acceptance from the TSX Venture Exchange. All securities issued in connection with the offering are subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

Warrant amendment

The company is also pleased to announce that it intends to extend the expiry date of five million share purchase warrants from Dec. 31, 2024, to Dec. 31, 2026 (the extension). On Dec. 16, 2021, Arcpoint Group LLC issued 10,000 warrants to Arcpoint Group security holders. Following the completion of the company's reverse takeover transaction on Oct. 21, 2022, the Arcpoint warrants were exchanged for the warrants. Each warrant entitles the holder thereof to acquire a share at a price of 16 cents per share. The extension remains subject to receipt of TSX-V approval.

About Arcpoint Inc.

Arcpoint is a leading U.S.-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, S.C., United States. Arcpoint Franchise Group LLC, formed under the laws of the State of South Carolina in February, 2005, is the franchiser 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 centre 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.

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