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"ARCPOINT ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT AND ANNOUNCES UPSIZE"

Wesley ParkFriday, Mar 7, 2025 6:40 pm ET
4min read

LISTEN UP, INVESTORS! arcpoint Inc. just pulled off a massive non-brokered private placement, raising a whopping C$800,000! This is a game-changer for the company, and you need to pay attention. Let's break it down:

1. THE DEAL: ARCpoint sold 10,000,000 units at C$0.08 per unit. Each unit includes one class A subordinate voting share and one share purchase warrant. These warrants let holders buy an additional share at C$0.12 for 24 months. But here's the kicker: if the stock price hits C$0.25 for 10 consecutive days, the company can accelerate the warrant expiry date. BOOM! That's a powerful incentive for investors to hold onto their warrants.

2. THE MONEY: The net proceeds from this offering will be used for operational expenses and other general corporate purposes, including increasing investor awareness, investor relations, and marketing expenses. This is crucial for ARCpoint's growth and visibility in the market.

3. THE PLAYERS: Felix Mirando and Adam Ho, both directors of the company, purchased or acquired direction or control over a total of 764,199 units. This shows confidence from the top, and it's a good sign for investors. But remember, this is a related party transaction, so keep an eye on potential conflicts of interest.

4. THE FINDERS: The company issued 428,400 finder’s shares and 536,400 finder’s warrants, and paid a cash commission of $36,057.60 to certain arm’s length finders, including Canaccord Genuity Corp. and Ventum Financial Corp. This indicates strong support from external parties, which is always a good sign.

5. THE FUTURE: ARCpoint isn't stopping here. They plan to raise an additional C$700,000 by offering another 8,750,000 units at C$0.08 per unit. This is a clear indication of their aggressive growth strategy, and it's something you should be excited about.

Now, let's talk about the strategic advantages ARCpoint gains from this upsize:

1. CAPITAL INJECTION: The additional capital will be used for operational expenses and growth initiatives, such as expanding their franchise system or developing new healthcare solutions. This is a no-brainer for driving revenue growth and profitability.

2. INVESTOR AWARENESS: The funds will also be used to increase investor awareness, investor relations, and marketing expenses. This is crucial for enhancing the company's visibility and attractiveness to potential investors, which can drive up the share price.

3. CONFIDENCE FROM KEY STAKEHOLDERS: The participation of Interested Parties, such as directors Felix Mirando and Adam Ho, demonstrates confidence in the company's future prospects. This can signal to other investors that the company has strong leadership and a promising outlook, which can increase investor confidence and potentially drive up the share price.



But let's not forget about the potential conflicts of interest that might arise from the participation of Interested Parties:

1. DECISION-MAKING BIAS: Directors who have a financial stake in the Offering may be influenced by their personal interests rather than acting in the best interests of the Company and all shareholders. This could lead to biased decision-making processes.

2. LACK OF TRANSPARENCY: The exemption from formal valuation and minority shareholder approval requirements may reduce transparency in the decision-making process. Shareholders may feel that they are not adequately informed about the details of the transaction.

3. MINORITY SHAREHOLDER PROTECTION: The exemption from minority shareholder approval requirements could potentially disadvantage minority shareholders who may not have the same level of influence or information as the Interested Parties.

4. REGULATORY COMPLIANCE: The Company's decision to rely on exemptions from MI 61-101 could be scrutinized by regulatory bodies. If the exemptions are not properly justified, the Company could face regulatory penalties or reputational damage.

So, what's the bottom line? ARCpoint Inc. has just made a bold move that could significantly impact its financial stability and future growth prospects. The upsize of its private placement provides strategic advantages that can translate into increased shareholder value. But remember, with great power comes great responsibility. Keep an eye on potential conflicts of interest and regulatory compliance. This is a stock to watch, and you don't want to miss out on the action. BOO-YAH!
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