ARCPOINT ISSUES SHARES TO SETTLE DEBT

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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.

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