Insurance Broker Acceptance
Contributes to Growth
MIAMI, FL, Nov. 14, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Novus Acquisition and Development, Corp. (OTC Markets: 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 third quarter ended September 30, 2018.
Third Quarter 2018 Highlights:
Management Discussion and Analysis
Novus and Cannabis Industry Outlook
Exit of Jeff Sessions
Since the exit of U.S. Attorney General Jeff Sessions, the victory for cannabis in the Mid-Term Elections, cannabis stocks have risen to new highs by more than 9%. Sessions was obstinate and his determination to put a federal ban on monetary transactions and depository processors. Even though there has been ease on transactional payments the issue remains on banks being disinclined to provide deposits made from cannabis transactions. With Sessions’ departure, it is more likely that banks might initiate a positive but cautious pace towards a depository relationship with business that utilize cannabis in their business model. As for the Trump Administration they have voiced an optimistic attitude toward the federal legalization of cannabis. If the new Attorney General of the Justice Department trails the president's example, federal legalization may very well be a reality before the next 2020 election.
Midterm Elections and Other Notable Cannabis Victories
The first week of November 2018 has shown an unprecedented week for the cannabis industry. Voters came out in record number to champion the cannabis effort and courts as well as the judiciary system:
1. Democrats Take The House: Considered as an optimistic inclination since this party has voiced its willingness to reforming federal cannabis laws.
2. New Mexico: Santa Fe judge ruled in favor of Nicole Sena, to provide medical cannabis to her epileptic infant daughter.
3. Michigan: Proposition 1 was approved by Michigan voters for recreational cannabis sales. Novus has a presence in this state.
4. Utah: The passage of Proposition 2 makes Utah the thirty-second state to legalize medical cannabis thanks to the Utah Patients Coalition. Novus has initiated filing to conduct business in Utah.
5. Missouri: Missourian voters charting a medical marijuana plan governed by the Missouri Department of Health approved Amendment 2. Novus has initiated filing to conduct business in Missouri.
6. Massachusetts: The state will begin recreational sales, with the clearance of two licensed cannabis-testing laboratories. Novus has a presence in this state.
7. Iowa: Dispensaries will commence their dispensaries to conduct business with medical CBD. Novus has initiated filing to conduct business in Iowa.
Cannabis Outlook
Novus’ Chief Executive Officer, Frank Labrozzi, commented, “What does this do for Novus? Having a new head of the U.S. Justice Department and Democratic House of Representatives will initiate passing bipartisan legislation to allow national banks to take deposits on legal cannabis transactions, offering auto draft and credit/debit card transactions streamlining the effort to procure new patient/members as opposed to taking in cash/check deposits. We believe these recent political changes place the U.S. on the path of federally legalizing cannabis, after which, Novus will benefit and increase its shareholder value.â€
During the third quarter of 2018, continued to sign up to their Provider Network additional legal medical cannabis dispensaries. Cannabis dispensaries are experiencing the ever-increasing competitiveness as the cannabis retail market expands. As Novus continues to build bridges for those dispensaries that once turned down to participate in our Provider Network, these same entities are now seeing Novus’ value by driving a customer base to their storefronts with higher than average monthly med purchases and gratuitous local advertising effort.
Insurance Broker/Agency Participation
Novus expanded its footprint as it signed agreements with insurance entities will bundle Novus Cannabis MedPlan with traditional health plans.
Alloy Insurance Services LLC: Novus executed a bundling agreement with Alloy Insurance Services LLC, an entity that provides employee benefits and administration services for over 50,000 employees nationwide. Integrating Novus to existing Alloy packages in states that allow distribution for Medical Regulated Cannabis, will add to Alloy’s expansion in level funded health plans, acute care and telemedicine, pharmacy management, gap insurance and all other employee benefits.
Revolution Insurance Technologies (RIT): Is a Silicon Valley funded FinTech that integrates insurance carriers and brokers to custom bundle insurance products from a multitude of carriers that meets the needs and budgets of their customers all in a single enrollment process.
RIT’s technology allows any agent to create customized benefit packages from diverse carriers and bundle those products that meets the needs and price of the customer. RIT business lines are primary health insurance, critical illness, integrative medicine, and now, Novus Cannabis MedPlan. RIT platform supports risk and non-risk products for the individual and group markets assisting in two critical components:
With open enrollment for 2019 underway, millions of Americans are faced with many competing solutions for their health plans and with Alloy and RIT’s augmented sale solutions, aligned with Novus anticipation of revenue stream increases is promising for all said entities.
Novus Cannabis MedPlan business model is clearly the most unique niche in the cannabis industry that will only continue to grow. We invite you to review the following:
Financial Summary:
Financial Results for the Three Months Ended September 30, 2018:
Revenue increased by 36% to $46,395 for the three months ended September 30, 2018, as compared to the three months ended September 30, 2017. 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 providers and patient members and lives covered.
Operating and Net income improved to a quarterly record of $27,161 for the three months ended September 30, 2018. This represents a 58.5% operating profit margin for the three months ended September 30, 2018.
The Company’s Balance Sheet remained strong with an increase in the cash balance to $111,184 and the Net Asset Value (NAV) of $1,416,395.
Financial Results for the Nine Months Ended September 30, 2018:
Revenue increased by 41% to $130,816 for the nine months ended September 30, 2018, as compared to the nine months ended September 30, 2017. 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 providers, broker/agency participation and coverage patient/ members.
Operating and Net income increased by 79% to $77,118 for the nine months ended September 30, 2018, as compared to the nine months ended September 30, 2017. This represents a 45% operating profit margin for the nine months ended September 30, 2017.
Capital Structure, Shares Outstanding and Trading as of September 30, 2018:
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 health care professional. Once a push notification is competed 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.