- 8 Consecutive Quarters of Revenue
Growth
- Positioned for Accelerated
Growth in Second Half of 2018
MIAMI, FL / ACCESSWIRE / August 13, 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 second quarter ended June 30, 2018.
Second Quarter 2018 Highlights:
8th Consecutive Quarters of Sequential Increase in Revenue:
Novus' Chief Executive Officer, Frank Labrozzi, commented, "As legalized medical cannabis continues to expand state by state, our goal for 2018 was to increase the visibility and awareness and ramp the covered lives of Novus Cannabis MedPlan. I am proud to report our 8th consecutive quarter of revenue growth and we are in great position to accelerate our market penetration and growth in the second half of 2018. Our confidence is due to our recently signed collaboration with Enlighten and having successfully added 13 dispensaries, cultivators and manufacturers that offer anywhere from 30% to 50% on cannabis medications to the Novus Cannabis MedPlan patient member base. Additionally, we are optimistic that many of the open discussions with potential strategic partners, medical cannabis businesses and dispensaries will result in signed agreements and roll-out over the remainder of 2018 and deliver further growth for 2019. 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."
During the second quarter of 2018, Novus commenced business collaboration with Enlighten, a multifaceted cannabis technology company. Novus will utilize Enlighten's interactive television technologies in a revenue sharing deal. Enlighten will place Novus' message at the point of sales in 650 dispensaries across the country with advertising to engage and educate consumers on the Novus Cannabis MedPlan. When consumers are engaged Novus will get analytics of verified impressions from the consumer mobile devices for retargeting.
Enlighten's technology solutions include interactive signage to inform and educate customers or employees, a retail analytics portal, integrated technology solutions to aggregate and systemize product offerings and internal operations, and tailored marketing solutions for product brands. Enlighten offers brands across the country with the unique ability to reach a targeted demographic with engaging advertisement right at the point of sale.
Overall market sentiment towards legalized cannabis has turned more favorable over the past couple of months, after a challenging end of 2017 and into the beginning of 2018. With Jeff Sessions' anti-cannabis sentiments lifted, no significant actions taken by the Federal government and President Trump openly respecting the States' positions on cannabis, investors and operators have all jumped back in with their pre-2018 aggressive and investment plans.
Novus MedPlans offers a solid value proposition to patient/members and dispensaries, cultivators and manufacturers.
To Patient/Members: If a cannabis consumer purchases $150 or more per month in cannabis meds, the consumer will benefit from being in the Novus Cannabis MedPlan. Novus patient members are spending on average $300 per month and with a minimum 30% discount, giving patients a gross saving would a min $90.00 per month or $1,080 per year.
Dispensaries / Cultivators / Manufactures: Novus helps dispensaries (at no cost) increase retail foot traffic with a marketing strategy that features the latest technology that allow unique insights about targeting consumers while they are in behavioral buy 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, and the most 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 helps the dispensary gain the competitive edge over their competition as a Novus MedPlan Provider.
Novus continues to successfully add to its Provider Network with more legal medical cannabis dispensaries nationwide. This expansion covers an area that encompasses approximately 30 million in the United States and 15 million in Canada.
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 June 30, 2018:
Revenue increased by 39% to $43,360 for the three months ended June 30, 2018, as compared to the three months ended June 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 patient members.
Operating and Net income improved to a quarterly record of $25,860 for the three months ended June 30, 2018. This represents a 60% operating profit margin (EBITDA) for the three months ended June 30, 2018 and demonstrates the scalability and efficiency of the business model.
The Company's Balance Sheet remained strong with Net Asset Value of $1,415,968 and an increase in cash balance to $109,678.
Financial Results for the Six Months Ended June 30, 2018:
Revenue increased by 45% to $84,421 for the six months ended June 30, 2018, as compared to the six months ended June 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 lives covered.
Operating and Net income increased by 135% to $49,957 for the six months ended June 30, 2018, as compared to the six months ended June 30, 2017. This represents a 59% operating profit margin for the six months ended June 30, 2018.
Capital Structure, Shares Outstanding and Trading as of June 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. Novus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information
Corporate:
Chairman and CEO
Frank Labrozzi
[email protected]
855-228-7355
Investors:
Hayden IR
[email protected]
917-658-7878
SOURCE: Novus Acquisition and Development, Corp.