ARCPOINT SEEKS TO EXPAND AFFILIATE NETWORK WITH LAUNCH OF SUBSCRIPTION MEMBERSHIP PLANS

Greenville, South Carolina, Oct. 17, 2023 (GLOBE NEWSWIRE) -- ARCpoint Inc. (TSXV: ARC) (the “Company” or “ARCpoint”) a leading US-based franchise system providing drug testing, alcohol screening, DNA and direct to consumer (“DTC”) clinical lab testing services, is pleased to report that it has launched two new subscription plans that offer businesses and individual consumers discounts on ARCpoint healthcare diagnostic testing services when subscribed for on an annual basis.     

ARCpoint CEO John Constantine commented, “The launch of the ARCpoint Access programs is a win-win-win scenario for our individual and business customers, and our franchisees. Under either an Individual or an Employer Access plan, annual subscribers will get bundled pricing on certain services and access to discounted pricing on all our other services. With the Access Employer program, business customers will be able to offer their employees certain healthcare benefits at a significant discount to the cost of traditional insurance plans”.

ARCpoint Access is not insurance, but it works where insurance doesn’t. It helps fill an important gap for those people who are left behind by the insurance system. ARCpoint Access provides access to valuable preventive and urgent care services that many people with no insurance or high deducible healthcare plans don’t have access to in an affordable way. As with most ARCpoint services, the Access programs are offered on a “cash” basis and vary in scope, degree of coverage and may include access to bundled wellness and preventative diagnostic testing service packages. All the Access plans offer varying discounts on ARCpoint services which are not included in a purchased bundle.

Mr. Constantine added “Our franchisees will also have a new opportunity to engage individual and business customers at a time when overall healthcare and employer funded healthcare costs are rising. Given that our franchisees have commercial relationships with over 4,000 businesses, this is an excellent opportunity to expand our affiliate network by turning those businesses into affiliates, which would expand our distribution reach and generate monthly subscription revenue”.

As the Company discussed in its August 10, 2023, news release, affiliate businesses are health-related businesses that are separate from Arcpoint, such as health or vitamin stores, fitness facilities, chiropractor offices, physician offices, clinical and genetic reference labs, and pharmacies. Given regulatory, licensing, technology and other issues, many of these types of businesses have not been previously able to offer DTC healthcare testing services. Using the MyARCpointLabs platform, affiliates can offer some or all ARCpoint's products and services to their customers to both enhance their own product and service offerings and, in some cases, generate additional revenue, while at the same time meeting applicable regulatory and other compliance obligations. With the launch of ARCpoint Employer Access, any business can now become a new type of affiliate by offering ARCpoint wellness and preventative diagnostic testing services to their employees, including discounts on all ARCpoint testing services not explicitly included in the particular employer-purchased subscription package. According to an October 16, 2023, Wall Street Journal article on employee healthcare benefits entitled “Surge in Health-Insurance Costs Pose Next Challenge for Finance Chiefs”, “Healthcare costs are rising at the steepest rate in years, leaving CFOs to manage the price tags”.

The Company also reports that it has undertaken new measures to reduce costs by USD$1,000,000 on an annualized basis. These cuts include annualized reductions in staffing and compensation of approximately USD$800,000 and USD$200,000 in sales, general and administration costs. As a function of these cuts, the Company will incur severance costs of USD$67,000 in the current month and start to see the full impact of financial benefits beginning in November of this year.

About ARCpoint Inc.
ARCpoint is a leading US-based franchise system 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. ARCpoint 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 : invest@arcpointlabs.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.

All statements that address activities, events or developments that ARCpoint expects or anticipates will, or may, occur in the future, including statements about ARCpoint’s future growth, business prospects, future trends, plans and strategies, expected benefits from business activities and the Company’s prospects for new business are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Although the management of ARCpoint believes that the assumptions made and the expectations represented by such statements are reasonable.

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