Mr. Jason Tong reports

ANY LAB TEST NOW AND ARCPOINT CREATE LARGEST FRANCHISE DIRECT ACCESS LAB TESTING GROUP IN THE UNITED STATES

Arcpoint Inc. has entered into a transaction, dated Aug. 20, 2024, with Any Lab Test Now (ALTN) and is finalizing the process to bring together the franchise operations of both companies into a new joint venture company, CRESSO Brands LLC.

Any Lab Test Now chief executive officer Clarissa Bradstock commented: "By combining our two franchise operations, we will not only create the largest franchise network of its kind in the United States, but we expect to capitalize on the respective strengths of both franchise groups to improve both individual unit and overall economic performance. As a collaborative group, we believe that Arcpoint franchisees will benefit from the Any Lab Test Now experience gained in successfully building our mostly individual consumer business. At the same time, we believe that Any Lab Test Now franchisees will benefit from the implementation of Arcpoint's proprietary technology platform, MyArcpointLabs, as well as Arcpoint's experience in the B2B and employer solutions markets."

Any Lab Test Now (ALTN) based in Atlanta, Ga., was founded in 1992. It currently has 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. ALTN has been recognized as one of the top 500 franchises for nine consecutive years in Entrepreneur's Franchise 500. Entrepreneur magazine's Franchise 500 is the world's first, best and most comprehensive franchise ranking. It is not intended to endorse, advertise or recommend any particular franchise, and is solely a tool to compare franchise operations.

Arcpoint chief executive officer John Constantine added, "In addition to the cost benefits and efficiencies of combining our respective franchise operations under CRESSO, we believe this partnership is very positive to Arcpoint shareholders in the near term as it will allow us to reduce Arcpoint's costs, while at the same time adding a new customer to our MyArcpointLabs technology platform and increasing our distribution footprint."

Under the terms of the agreement, both Arcpoint and ALTN have contributed their franchise operations into CRESSO Brands, a Delaware limited liability company. ALTN will own 70.5 per cent of the new entity, with Arcpoint owning the other 29.5 per cent. Both ALTN and the Arcpoint Franchise Group (AFG) brands will remain and be managed on a separate basis. Ms. Bradstock will continue to lead ALTN, as she has for the past 11 years and Bob Mann will continue to lead AFG, as he has done since April, 2023. In addition to continuing his role as Arcpoint chief executive officer John Constantine will also act as implementation strategist for CRESSO and split his time with Arcpoint. Both ALTN and AFG management teams will report to a CRESSO board of directors, which will comprise a total of five members. Of the five directors, three will be appointed by ALTN and two by Arcpoint. The Arcpoint nominees will be Mr. Constantine and Mr. Mann.

Separately, ALTN and Arcpoint have agreed to make Arcpoint's MyArcpointLabs technology platform the system's choice for CRESSO brand franchisees.

Any Lab Test Now is an arm's-length party to Arcpoint and there are no finders' fees payable in connection with this transaction.

About Arcpoint Inc.

Arcpoint is a leading United States-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.