Mr. Jason Tong reports

ARCPOINT PROVIDES CORPORATE UPDATE ON BENEFITS OF CRESSO TRANSACTION

Arcpoint Inc. has provided the following corporate update and will host a conference call at 4:45 p.m. Eastern Time, Wednesday, Sept. 4, 2024, to review the company's second quarter (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/United States toll-free:  1-844-763-8274

International toll:  1-647-484-8814

Callers should dial in five to 10 minutes prior to the scheduled start time and ask to join the Arcpoint call.

Arcpoint president and chief executive officer 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 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. Any Lab Test Now, based in Atlanta, Ga., was founded in 1992 and at the time of the Aug. 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 health care ecosystem we are creating."

As the result of contributing its franchise operations into Cresso in exchange for a 29.5-per-cent interest in Cresso, Arcpoint has reduced its head count to six full-time equivalent employees and reduced approximately $487,000 in annualized salary costs and $150,000 in annualized G&A (general and administrative) 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 $290,000 for the remaining managers and issued stock options grants. Accordingly, the company announces that, today, it has granted, in aggregate, 4.72 million options to certain directors, employees and consultants of the company pursuant to its omnibus incentive plan. Each option is exercisable to acquire one Class A subordinate voting share (SVS) of the company at a price of 12 cents per SVS with a term of 10 years from the date of issue. The options vest quarterly in eight equal instalments 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 securityholders June 26, 2024. Accordingly, the company's name will remain Arcpoint and the company will continue under the Canadian Business Corporations Act for the time being.

About Arcpoint Inc.

Arcpoint is a leading United States-based franchise system that leverages technology along with bricks and mortar locations to give businesses and individual consumers access to convenient, cost-effective health care information and solutions with transparent, upfront pricing, so that they can be pro-active and preventative with their health and well-being. Arcpoint is based in Greenville, S.C. 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 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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