Novus Reports Second Quarter 2021 Results

Signing of Oklahoma’s first supplier and continued execution of carrier agreements

MIAMI, August 12, 2021 (GLOBE NEWSWIRE) – Novus Acquisition and Development, Corp. (OTC Markets: NDEV), through its wholly owned subsidiary WCIG Insurance Services, LLC., is a hybrid health insurance entity and, the first healthcare organization in the country to offer cannabis in health plans for recreational and medicinal users , today released its second quarter financial results for the three months ended June 30, 2021 and its expansion into the Oklahoma market.

Novus continues to bring together more health carriers and third-party administrators add its benefits of cannabis as a rider and / or as supplement package consumer health plans. These alliances realize the potential for increased revenue and market share as consumer spending increases in the legal market.

According to Forbesby 2025, 5.4 million Americans, or 2.4% of American adults, will be registered patients in medical cannabis states. “ However, what has not been taken into account is the increase in prices and the addition of federal taxes on recreational products. To curb this increase, we anticipate an influx of medicinal and recreational users requesting cannabis benefits from their health plans in order to make it affordable.

There were four milestones in the second quarter of 2021:

a) Financial highlights:

  • Increase in income: $ 4,821 or 8% to $ 64,731 for the three months ended June 30, 2021, compared to $ 59,910 for the three months ended June 30, 2020

  • Profit margin: Demonstrated a 37% profit margin pricing structure in its business model for the three months ended June 30, 2021

  • Increase in net income: $ 3,396 or 17% to $ 24,080 for the quarter ended June 30, 2021, compared to the quarter ended June 30, 2020

  • Increase in equity: $ 1,481,749 as of June 30, 2021, compared to $ 1,468,783 as of December 31, 2020

  • Increase in cash and cash equivalents: At $ 163,172 as of June 30, 2021, compared to $ 154,345 for the three months ended June 30, 2021

b) Oklahoma Market Entrance: Light Heart Farms Dispensary of Tulsa, Oklahoma will be the first provider to offer preferential rates to patients / Novus members as we begin to expand into the territory. In the space of two years, in Oklahoma, medical cannabis patients (5% of its 4 million population) outnumbered medical cards, surpassing those in many states. Second, in Oregon, it has 15 cannabis dispensaries per 100,000 population, making it the most competitive in the country with vertical cannabis companies already competing fiercely for the state’s 250,000 cannabis users.

vs) PRAM: Begins a market rollout to their subscriber base. PRAM focuses on the exclusive benefits of prescription drugs; they identify a unique need to control the costs of pharmacies on the market. They have a large customer base in the group’s markets and a distribution base with carriers.

D) Health Compass: This insurance agent platform offers ready-to-buy personalized plans designed for agent access to personalized policies. Their portal can link Novus Cannabis MedPlan with warranty issues and as stand-alone policies.

Other notable agreements:

  • Unique UIC insurance concepts: A consortium of health insurance agents that focuses on group policies, Medicare supplements, dental care and critical illness with more than 5,000 corporate clients.

  • Go enroll / raise well-being: One of the first InsureTech platforms in the country for large groups with more than 92,000 customers. This platform allows employees to integrate cannabis with dental, visual, GAP and other plans. Elevate wellness plans cover over 4,500 employers where their employees are allowed to choose alternative treatment options that may not be available from their traditional health care providers.

  • Single share: A healthcare provider sharing a path to ACA-free healthcare. Its health-based sharing membership plan focuses on catastrophic plans and comprehensive health.

  • Key Benefits: East Minimum essential care (MEC) is a plan that meets the requirements of the Affordable Care Act to obtain health coverage. Some of these programs under MEC include market plans, employment-based plans, Medicare, and Medicaid. Mainly focused on coverage of routine disease prevention plans.

  • Well-being 360: This is an employee wellness platform that offers plans, program guides, online educational resources, a white label wellness program, and many other customizable options for well-being at work.

  • Back 9 Insurance: Is an InsureTech platform that sells annuities, life insurance, long-term care, and disability benefits. Their platform makes it easy for agents to view side-by-side comparisons with over 50 carriers and offer Novus’ plans on a cross-sell basis.

  • National life: Contracted through the provider Novus Compass Health, it is one of the oldest life insurance companies in the country.

  • Medova Health: Novus has signed an agreement with Medova Healthcare that offers Bridgewell Health®, which are six guaranteed plans issued that offer prevention and wellness plans with robust medical benefits designed for collective employee health benefits.

As the cost of healthcare will exceed the rate of inflation and with federal legalization adding 15% to 25% to state taxes of 21% on average, cannabis will undoubtedly become more expensive. Novus maintains its position as a business model, influencing cannabis consumers and making it affordable by making patients / members choose it as a health benefit, thus reducing the total amount of expenditure at the point of sale.

Research Novus:

About Novus
Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions in the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure in many branches of the insurance business such as health, damage, life, accidents and fixed annuities.

The Novus medical cannabis benefit package will operate as external developers and will not cultivate, manipulate, transport, develop, extract, distribute, release for sale, place on the market, will not sell, deliver, supply, circulate or trade cannabis or any substance that violates United States law or the Controlled Substances Act, and does not intend to do so at future and will continue to follow federal and state laws. 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 any disease. All information provided in these press releases, or any information contained on or in a product label or package is for informational purposes only and is not intended to replace the advice of your physician or other healthcare practitioner. . Once the push notification is complete, the transaction occurs only between the state-approved dispensary and the registered patient.

State laws conflict with federal controlled substances law. The current administration has effectively said that it is not an efficient use of resources to order federal law enforcement agencies to prosecute those who legally obey state-designated laws, authorizing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, or any future administration, will not change this policy and decide to forcefully enforce federal laws. Such a change in the federal government’s application of applicable federal laws could result in significant financial changes for Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis-related products, we may be adversely affected by a change in enforcement by federal or state governments.

Forward-looking statements
This press release includes forward-looking statements, which are based on certain assumptions and reflect the current expectations of management. These forward-looking statements are subject to a number of risks and uncertainties which could cause actual results or events to differ materially from current expectations. Some of these factors include: general world economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will produce the expected benefits; increasing competition; availability and cost of capital; the ability to identify, develop and achieve business success; the level of expenditure required to maintain and improve the quality of services; changes in the economy; changes in laws and regulations, including codes and standards, intellectual property rights and tax matters; or other unanticipated matters; our ability to establish and maintain strategic relationships and distribution agreements. Novus disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor contact details
Email: [email protected]

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