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Miami, Florida - ( ThriveNewsWire ) - NovusAcquisition & Development Corp d/b/a Novus Cannabis MedPlan (OTCMarkets: ( NDEV )is a leading national supplemental health insurance carrier andpioneer in offering cannabis in health plans for recreational andmedicinal users. It released its update on its Q1 2024 results, RxDispensing Platform, and Key Elements that fuel its success after theDrug Enforcement Agency (DEA) announced that cannabis will berescheduled.
NovusCannabis MedPlan (Novus) has been integrating cannabis into healthplans since 2015. With a network of over 1,200 agents, brokers, anddispensaries, Novus aims to make cannabis-based treatments moreaffordable and accessible through insurance plans, benefitting a widerrange of consumers.
Here arethree key highlights that contribute to Novus' success.
1) FinancialSnapshot:
Thecompany utilizes a receivable-based business model with minimaloverhead and no convertible debt, demonstrating consistent organicgrowth year over year.
NoDilution: No common stock has been issued after June 15,2021.
No Salesof Insider Shares: For close to 3 years
Gross RevenueIncrease : During this reporting period, Gross Revenue increased by6.8% compared to March 31, 2024 and 2023, respectively,
Net RevenueIncrease : During this reporting period, EBITDA increased by 19.47%compared to March 31, 2024, and 2023.
Profit Margin : During the reporting period,the company experienced a gradual increase in gross profit margins,with margins of 43.14% in 2023 and 45.2% in 2024
Cash and CashEquivalents: There was an increase of 1.8% compared to thefinancial reporting periods on March 31, 2024, and December 31, 2023.This is in contrast to the higher increase of 6.84% in the period fromMarch 31, 2023, to 2024.
Debt Transparency : Frank Labrozzi, the CEO, is owed$158,061. He has no plans to exercise the call provision, and thisdebt instrument has no equity conversion provision.
Leak Out VendorShares : All vendors who received treasury-issued stock mustgradually sell their shares. The selling amount is determined based on15% of the average daily trading volume over the past 30 days.
2) Introducing the Rx Dispensing Platform
Novus is strategically positioning its cannabishealth plans to become a prominent player in mainstream healthcareinsurance by acquiring an Rx Dispensing Platform tech stack. FrankLabrozzi, CEO of Novus, stated, "This advancement willsignificantly impact cannabis in health plans. By promotingcollaboration between brands and dispensaries, we aim to empowerpolicyholders with more choices, enabling them to purchase the brandsthey prefer at any dispensary.
Cannabis brands can use the platform to connectdirectly with dispensaries and showcase their products at no cost.This will improve product distribution efficiency, increase brandvisibility, provide real-time inventory data, and facilitate productresearch for the policyholder.
An added bonus to For Rec Users : Thisplatform serves recreational users who prefer not to disclose personalinformation like their policyholder status to access plan benefits.Instead, users can discreetly order services for a small subscriptionor transaction fee.
3) KeySuccess Factors
Midwest Expansion: Novus has partnered with HeyaWellness, a prominent cannabis company in Missouri, to offer MedPlansto 4.3 million potential policyholders in the Midwest. By leveragingMissouri's favorable reciprocity laws, Novus aims to maximize thebenefits for our sales hub based in St. Louis.
Health CarrierAlliances Integration with Traditional Healthcare :
By treating cannabis asa traditional pharmaceutical product and including it in insuranceplans, Novus could help normalize cannabis use for medical,recreational, and non-users. Now that there is federal approval, Novusbridges traditional healthcare and the cannabis industry, enhancingmajor healthcare carriers who have expressed interest in integratingNovus' cannabis-based prescription plans into their benefitspackages, establishing a connection between the two industries.
Compassionate CareAct (CCA): The CCAs, which the Supreme Court sanctions, typicallyfocus on making medical marijuana accessible to workplace patientswith specific conditions. Human Resources departments are revisingworkplace policies to allow employees to access medical marijuanathrough employer-sponsored health plans. Novus plans to cover somecosts through tax-deductible health savings and health reimbursementaccounts.
Opioid SettlementFramework:
The opioid settlement framework is a legal agreement aimed atresolving litigation against pharmaceutical companies and healthcarriers accused of contributing to the opioid crisis. It includes $50billion for prevention, treatment, and recovery programs with the goalof mitigating the crisis' impact and preventing future misuse.Novus is playing a crucial role in reducing opioid use by offeringstates and private organizations alternative treatment options throughour developed health plans that help patients transition from opioidsto medical cannabis.
Compliance with the Veteran’s Affairs (VA) : Veteransare increasingly interested in utilizing cannabis for treatment—over88% support medical cannabis programs. Novus has developed healthplans following VA guidelines to integrate cannabis benefits forveterans.
In closing: As Novusadjusts to the positive changes in federal cannabis regulation, we areprepared to utilize our niche approach to cannabis in health plans,which utilizes a receivables-based business model. This approachstrategically enables us to organically invest in critical areas suchas marketing, improving engagement with policyholders and providers,and establishing a reliable cash flow management system. Thispositions Novus as a significant player in the fast-evolving cannabisintegrated into health insurance plans. Do your research on ourcompany to understand our potential in shaping the future ofhealthcare. Visit our InvestorRelations page to see for yourself.
About Novus
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Novus Acquisition &Development Corp. (NDEV) operates through its subsidiary, WCIGInsurance Services, Inc., offering health insurance and relatedinsurance solutions in states with legal medical marijuana programs.With a robust infrastructure covering various insurance lines,including health, life, and fixed annuities, Novus is a leading healthinsurance carrier, using two key indicators to gauge value andperformance.
The BenefitMonetization Ratio measures the annual total of monetizedpolicies, offset by the operating cost ratio, a Balance Sheet lineitem derived from Net Asset Value and calculated to the Price BookValue.
Novus' medicalcannabis benefits package operates as an outside developer. It doesnot engage in any activities related to the cultivation, handling,transportation, growth, extraction, dispensing, sale, marketing,vending, delivery, supply, circulation, or trade of cannabis or anysubstances violating United States law or the Controlled SubstancesAct. The company adheres strictly to state and federal laws and has nointentions to violate them in the future.
It is important to note that statements regarding specificproducts have not been evaluated by the United States Food and DrugAdministration (FDA) and should not be interpreted as intended todiagnose, treat, cure, or prevent disease. The information provided inpress releases and product labels is for informational purposes onlyand should not be considered a substitute for advice from qualifiedhealthcare professionals.
Novusrespects the individual transactions involving cannabis, which aresolely between state-licensed dispensaries and registered patients.However, it's worth noting that state laws may conflict with thefederal Controlled Substances Act. The current administration hasindicated that federal law enforcement agencies will not prioritizeprosecuting those complying with state-designated laws concerningmedical marijuana usage and distribution. Nevertheless, changes ingovernment policies and consolidation could impact the providernetwork, and there is no assurance that future administrations willnot alter this stance.
WhileNovus does not engage in the harvest, distribution, or sale ofcannabis or cannabis-related products, the company could be affectedif there were any shifts in enforcement by federal or stategovernments concerning existing laws. Such changes could result insignificant financial implications for Novus and other industryplayers.
Forward-LookingStatements
This release includes forward-looking statements, which arebased on certain assumptions and reflect management's currentexpectations. These forward-looking statements are subject to a numberof risks and uncertainties that could cause actual results or eventsto differ materially from current expectations. Some of these factorsinclude general global economic conditions; general industry andmarket conditions and growth rates; uncertainty as to whether ourstrategies and business plans will yield the expected benefits;increasing competition; availability and cost of capital; the abilityto identify and develop and achieve commercial success; the level ofexpenditures necessary to maintain and improve the quality ofservices; changes in the economy; changes in laws and regulations,includes codes and standards, intellectual property rights, and taxmatters; or other matters not anticipated; our ability to secure andmaintain strategic relationships and distribution agreements.Dilution, if any, would be for the purposes of management taking stockin lieu of cash salary. Novus disclaims any intention or obligation toupdate or revise any forward-looking statements, whether as a resultof new information, future events, or otherwise. Additionally, thispress release that is not statements of historical fact may beconsidered to be forward-looking statements. Written words such as"may," "will," "expect," "believe,""anticipate," "estimate," "intends,""goal," "objective," "seek,""attempt," or variations of these or similar words, identifyforward-looking statements. By their nature, forward-lookingstatements and forecasts involve risks and uncertainties because theyrelate to events and depend on circumstances that will occur in thenear future.
Investor ContactInformation
855-228-7355
Email: pr@getnovusnow.com
ContactDetails
Novus Acquisition
FrankLabrozzi
+1 305-467-6699
CompanyWebsite
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