- 6 Consecutive Quarters of Revenue
Growth
- Net Income Up 107% for the Year
MIAMI, FL / ACCESSWIRE / March 29, 2018 / Novus Acquisition and Development, Corp. (OTC PINK: NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation's first carrier/aggregator offering a cannabis health plan, today reported financial and operational results for its fourth quarter and year-end December 31, 2017.
Fourth Quarter 2017 and Year End 2017 Highlights:
Novus' Chief Executive Officer, Frank Labrozzi, commented, "We are very pleased with our business execution, revenue growth and profitability in 2017. The platform and infrastructure we have built has demonstrated reliability and scalability and is poised for continued growth in 2018 and beyond. We are in discussions with many potential strategic partners, medical cannabis businesses and dispensaries that we hope to work with in the coming months that we believe will accelerate our visibility, market penetration and growth. Medical cannabis regulation continues to gain populous support due to its medical health benefits and is now approved and regulated in 30 U.S. states. We look to continue to be at the forefront of adding value to both medical cannabis consumers and businesses in an underserved and inefficient market."
Novus' health insurance business model is divided into three components:
Novus continues to execute its plan as an early mover as an insurance entity in the legal medical cannabis industry with its unique business model and strategic partnerships with a focus on growing its number of patient members. Its in-house multi-prong marketing strategy utilizing direct digital marketing and strategic partners has been key to increase visibility and awareness and expand the business. Novus targets three groups of people:
Novus Adds Value to its Patient/Members and Cannabis Dispensaries:
Patient/members that purchase $150 or more per month in cannabis meds qualify for the Novus Cannabis MedPlan. Novus patient members are spending on average $300 per month and with minimum 30% discount, giving patients a gross saving would a min $90.00 per month or $1,080 per year.
Novus helps dispensaries (at no cost) to improve their marketing strategy with the latest technology, allow unique insights about targeting consumers while they are in a behavioral pattern. By delineating the differences between dispensary customers and the general population, or the dispensaries top competitors in their geo region. Novus taps into a 5 meter geo fence versus Google's quarter-mile geo fence, giving Novus the ability to comprehend customer's path to purchase while patronizing competitive dispensaries (at the (point of interest and visitation patterns). Then we can expand the reach of location-based audiences with a retargeting strategy across screens and formats. The final and more powerful strategy is location-based audiences across devices and formats for greater reach using real world, contextually relevant data.
Member Access: to a loyal and exclusive patient market, averaging $300 per month in purchase. Novus help the dispensary gain the competitive edge over your competition as a Novus MedPlan Provider.
Novus now can implement the sales of their health benefits in the State of Florida, projected to be the second largest cannabis market in the United States. However, the Florida legislature has delayed a definitive regulatory plan but is expected by June 2018. Many analysts project that Florida's cannabis market will grow to $1.6 billion by 2020 at a compound annual growth rate of 140%; making it at least half the size of California's projected $2.6 billion and projecting Florida to be 7.5% of the total legal U.S. cannabis market by 2020.
Other states that have medical cannabis regulations that contain THC (greater than 1%), these states are still pending final legislation and have sizeable populations for Novus to target:
Novus continues to successfully add to its Provider Network with more legal medical cannabis dispensaries for medical marijuana (MMJ) in California, Nevada and Michigan. This expansion covers an area that encompasses approximately 400,000 potential new Novus MedPlan members.
Novus is proud to introduce recently added providers into its network:
During the fourth quarter, Novus attained a Canadian federal charter allowing it to conduct its business model across the entire country, versus having to incorporate in each province. Novus is currently rolling out its branding and sales initiatives in the provinces of Ontario, British Columbia, Quebec, Alberta and Saskatchewan. Since the Canadian regulation is federal, inter-province is legal, as opposed to the U.S. whereby it's intrastate only. On July 1, 2018 Canadians will be able to purchase marijuana medically and recreationally, and, as always Novus had the foresight to be first to market in the medical cannabis sector.
On October 23, Novus partnered with CannaLife Financial Solutions, Inc. ("CannaLife"). The partnership will expand Novus' presence in the cannabis health and life insurance industry by leveraging CannaLife's life components as a value-add to the Novus health distribution model. As a result of this deal, Novus will be the aggregator and CannaLife will be the administrator of writing new business under the name of Novus CannaLife.
Novus continues to identify and engage in talks with a wide variety of potential strategic partners to increase its visibility and awareness with the ultimate goal of increasing its lives covered and revenue. The continued discussions range from widely known nationwide cannabis brands to niche local state businesses.
Financial Results for the Three Months Ended December 31, 2017:
Revenue increased by 55% to $37,904 for the three months ended December 31, 2017, as compared to the three months ended December 31, 2016. This increase was primarily due to increased awareness and visibility of the Novus MedPlan offering and the improvement in key performance indicators (KPI) in the Company's in-house marketing efforts, which resulted in a greater number of patient members.
6th consecutive quarter of sequential increase in revenue:
Operating and Net income improved to a quarterly record of $21,926 for the three months ended December 31, 2017. This represents a 58% operating profit margin for the three months ended December 31, 2017 and demonstrates the scalability and efficiency of the business model.
The Company's Balance Sheet remained strong with a slight 1% decrease in Net Asset Value to $1,360,207 and an increase in cash balance to $102,888.
Financial Results for the Twelve Months Ended December 31, 2017:
Revenue increased by 66% to $130,426 for the twelve months ended December 31, 2017, as compared to the twelve months ended December 31, 2016. This increase was primarily due to increased awareness and visibility of the Novus MedPlan offering and the improvement in key performance indicators (KPI) in the Company's in-house marketing efforts, which resulted in a great number of lives covered.
Operating and Net income increased by 107% to $64,897 for the twelve months ended December 31, 2017, as compared to the twelve months ended December 31, 2016. This represents a 50% operating profit margin for the twelve months ended December 31, 2017 and demonstrates the scalability and efficiency of the business model.
Capital Structure, Shares Outstanding and Trading as of December 31, 2017:
We invite you to review the entire filing here: https://www.otcmarkets.com/stock/NDEV/filings
About Novus
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as, health, property & casualty, life, accident and fixed annuities.
Novus medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure or prevent disease. All information provided on these press releases or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other healthcare professional. Once a push notification is completed the transaction is solely between the state-licensed dispensary and the registered patient.
The state laws are in conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state designated laws, allowing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial changes to Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis related products, we may be harmed by a change in enforcement by federal or state governments.
Forward-Looking Statements
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success; the level of expenditures necessary to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; or other matters not anticipated; our ability to secure and maintain strategic relationships and distribution agreements.