MIAMI, Aug. 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 nation’s first health carrier offering cannabis in health plans to recreational and medicinal users, today reported its second quarter financial results for the three months ended June 30, 2021 and its expansion into the Oklahoma market.
Novus continues to gather more health carriers and third-party administrators to add its cannabis benefits as a rider and/or as a supplement bundle to consumer health plans. These alliances realize the potential of increasing revenue and market share as consumer spending surges within the legal market.
According to Forbes “by 2025, 5.4 million Americans, or 2.4% of U.S. adults, will be registered patients in medical cannabis states.” However, what was not considered is the rising prices and added federal taxation to recreational products. To abate this increase, we project an influx of medicinal and recreational consumers applying for cannabis benefits to their health plans in order to make it affordable.
There were four significant milestones within the second quarter of 2021:
a) Financial Highlights:
- Revenue Increase: $4,821 or 8% to $64,731 for the three months ended June 30, 2021, as compared to $59,910 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
- Net Income Increase: $3,396 or 17% to $24,080 for the three months ended June 30, 2021, as compared to three months ended June 30, 2020
- Shareholder Equity Increase: $1,481,749 on June 30, 2021, from $1,468,783 on December 31, 2020
- Cash and Cash Equivalents Increase: To $163,172 on June 30, 2021, compared to $154,345 three months ended June 30, 2021
b) Oklahoma Market Entry: Light Heart Farms Dispensary of Tulsa Oklahoma will be the first Provider that will offer preferred pricing to Novus patient/members as we begin to roll out in the territory. Within two years Oklahoma, medical cannabis patients (5% of its 4 million residents) have exceeded in obtaining medicinal cards, outpacing those in many states. Second, to Oregon it has 15 cannabis dispensaries per 100,000 residents, making it the most competitive in the country with vertical cannabis businesses already viciously competing for the state’s 250,000 cannabis users.
c) PRAM: Begins a market roll out to their subscriber base. PRAM focuses on proprietary prescription drug benefits; they identify a unique need for pharmacy cost containment in the marketplace. They have a sizeable client base in the group markets and a distribution base with carriers.
d) Compass Health: This insurance agent platform offers customized ready-to-buy personalized plans designed for agent access to customized policies. Their portal can pair Novus Cannabis MedPlan with guarantee issues and as standalone policies.
Other Notable Agreements:
- Unique Insurance Concepts UIC: A consortia of health insurance agents that focus on group policies, Medicare supplements, dental and critical illness with over 5,000 corporate clients.
- Go Enroll / Elevate Wellness: One of the nation’s top InsureTech platforms targeted for large groups with over 92,000 clients. This platform allows employees to integrate cannabis with Dental, Vision, GAP, and other Medical Plans. The Elevate Wellness Plans cover over 4,500 employers where their employees are allowed to choose alternative treatment options that may not be available through their traditional healthcare providers.
- Oneshare: A medical cost-sharing provider an ACA-exempt path to healthcare. Its health-based sharing membership plan focuses on Catastrophic Plans and Complete Health.
- Essential Benefits: Is Minimal Essential Care (MEC) is a plan that meets the Affordable Care Act requirement for getting health coverage. Some of these programs under MEC include marketplace plans, job-based plans, Medicare, and Medicaid. Mainly focused on covering routine preventative illness plans.
- Wellness 360: This is an employee-based wellness platform that offers plans, program guides, online educational resources, a white label wellness program, and many other customizable options for workplace wellness.
- Back 9 Insurance: Is an InsureTech platform that sells annuities, life, long-term care, and disability. Their platform makes it easy for agents to display side-by-side comparisons with over 50 carriers and offer Novus’ plans in a cross-sell.
- National Life: Contracted through Novus provider Compass Health this is one of the oldest life insurance carriers in the country.
- Medova Healthcare: Novus has executed an agreement with Medova Healthcare that offers Bridgewell Health®, which are six guaranteed issued plans that offer preventive and wellness plans with robust medical benefits designed for employee group health benefits.
As the cost of healthcare will outpace the rate of inflation and with federal legalization, adding 15% to 25% on top of state taxes averaging 21%, cannabis will no doubt become pricier. Novus maintains its business model position, by influencing cannabis consumers and making it affordable through incentivizing patient/members to choose this as a health benefit thus reducing total out-of-pocket at the point-of-sale visit.
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 completed 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.
This release includes forward-looking statements, which are based on certain assumptions and reflect 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.
Investor Contact Information