Cannabis Companies Can Boost Value by Utilizing Novus’ Business Model

Novus Named Once Again as Top 30 Stocks by InvestorPlace Magazine

MIAMI, FL / ACCESSWIRE / January 13, 2020 / Novus Acquisition and Development, Corp. (OTC PINK:NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a health insurance carrier that contracts with cannabis cultivators, extractor/manufacturers and retailers as its in-network provider for its THC and CBD cannabis health plans. Today, Novus addresses how its health plan that includes cannabis is an ideal alignment for the major cannabis verticals to begin an era of profitability.

The cannabis supply chain is considered a super charged engine with no brakes. The essential problem with the cannabis industry is mainly involved with cultivation and extraction known as the “Verticals” where the order of the day is, grow it, crush it and get it out the door. Correlating to unstable pricing and availability.

This year shareholders will build more pressure for the Verticals to become profitable while faced with inventory buildup and/or pricing decreases. Novus’ strategy for Verticals is tailoring health plan designs from a pass along rebate/discount on cannabis meds in the form known as “Usage-based Health Plans”. Historically, health carriers offer members who can use these plans to keep cannabis meds affordable, at the same time maintaining higher volume and attractive profit margins for the Vertical.

This method offers two options: a) proposition a larger markdown and make less money on the cannabis meds or b) offer a larger discount while also raising the list price of the cannabis, therefore keeping the net price level. We are seeing most Verticals selecting the latter option making the value prop to the average consumer more attractive.

For its part, Novus CEO Frank Labrozzi, says, “We look forward to speaking with the Verticals as a part of a broader effort to familiarize them with Novus benefit plans, customized to the framework of the Verticals profit/yield model, drive exclusive traffic to their brands, at the same time deliver savings to patient/members and improve their health care experience.”

InvestorPlace Named Novus “30 Marijuana Stocks to Buy as the Future Turns Green”

InvestorPlace, Josh Enomoto wrote: “Cynically, I may add that insurance providers don’t benefit much from non-pharmaceutical endorsed solutions. Either way, marijuana-therapy patients are left with sizable bills…But why I’m really intrigued by NDEV stock is the underlying company’s pioneering spirit”.

Novus Chief Executive Officer Frank Labrozzi, stated, “We are very appreciative to InvestorPlace and Mr. Enomoto, and, we’d like to address, that it is accurate, most insurance providers don’t benefit on non-pharmaceutical solutions but our 4%-7% increases per quarterly revenue shows that cannabis is the exception to the rule. And, to further that point, if forecasts are moderately correct, cannabis sales will conceivably see historic highs in 2020, spring-boarding our continued growth.” Review Article: Click Here.

Conclusion

As Wall Street’s top cannabis Verticals are depleting in cash the need for dry powder will be mission critical, resulting in a thin out of these Verticals. Novus wants these Verticals to know, that this doesn’t have to happen, we have the consumers that pay higher than average sales per capita and we can navigate our patient/ members to the Vertical’s brand and still maintain healthy profit margins.

The path of Novus’ business model is clear in executing within and out of the cannabis footprint. We are the least cash intensive company in the Cannabis Index. Our performance and fundamentals demonstrated continued progression in 2019 and we look forward to doing the same in 2020. We invite you to do the research.

Source:

InvestorPlace Article: Click Here

• 2019 Q3 Filing: Click Here
• Executive Summary: Click Here
• Quote: Click Here
• Website: Click Here
• Investor’s Page: Click Here
• How Insurance: Companies are Evaluated: Click Here
• Media Coverage December 30, 2019: Click Here

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. Please do your research with a certiried financial professional.

Vested Shares

Novus from the beginning has established a leak-out provision on third party vendor stock. This means that all shareholder(s) who receives stock as a compensation cannot sell more than 5% of the average daily volume in any given month. For example: If the average daily volume is 100,000 shares, the shareholder(s) upon receiving their vested shares cannot receive any more than 5,000 shares from the transfer agent on a monthly basis. Making a run on the stock very difficult.

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
frank@ndev.biz
855-228-7355
Email Investor Relations: ir@getnovusnow.com

SOURCE: Novus Acquisition and Development, Corp.

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