Novus Cannabis MedPlan Well-Positioned to Benefit from Continued Growth in Cannabis Sector
Novus Acquisition and Development Corp. (OTC Markets: NDEV) is a leading national supplemental health insurance carrier and pioneer in offering cannabis embedded in health plans for both recreational and medicinal users. Today, it released its Third Quarter Interim Financial Statement for the period ending September 30, 2023.
Novus is improving financial stability by securing insurance distribution alliances in the cannabis and insurance industry. The company’s business model is highly adaptable, allowing it to comply with regulatory requirements specific to any jurisdiction and achieve profitability.
Key Financial Metrics
NovusÃ¢ÂÂ business model involves not physically handling the plant. This allows the company to deduct certain expenses that other companies who handle the plant cannot. This is made possible thanks to IRS code 280e, which gives us a competitive market edge by positively affecting our financial condition in the third-quarter results that were:
- Gross Revenue: $11.4% increase compared to the same period last year.
- Net Revenue: $24.34% increase compared to the same period last year
- Profit Margin: 45% (EBITDA).
- Shareholder Equity: A 3.7% increase compared to the same period last year.
- Cash and Cash Equivalents: A 10.22% increase compared to the same period last year
- No dilution since June 15, 2021
- No sales of insider shares in more than 2.5 years
- No convertible notes issued or outstanding
- All debt is owed to the CEO, with no plans to exercise any call provision or convert to equity.
- All third-party vendors who received stock issued from the treasury are subject to a contractually mandated leak out of securities, which is 15% of the average daily trading volume computed over the last 30 trading days.
Federal Regulatory Environment
To ensure compliance with the regulatory landscape, the company’s management evaluates it and plans for any expected changes. The federal government anticipates introducing two phases of reforms, but they are believed to have a modest impact at best.
The first of these changes is the SAFER Banking Act reforms, which will require the DEA to accept the rescheduling of cannabis as Schedule III. Federal law mandates that doing the opposite would be non-compliant.
Then, the Federal government will impose taxes on cannabis sales, which may increase the price of recreational cannabis, leading users to switch to medical cannabis with lower taxes, benefiting Novus’ revenue potential.
Novus’ financial and market presence has improved every quarter, with market share and earnings growing moderately. The company has a strong balance sheet and is well-positioned for continued growth in the future.
To review the entire financial report, please visit Novus’ Financial Report.
Novus Acquisition & Development Corp. (NDEV) operates through its subsidiary, WCIG Insurance Services, Inc., offering health insurance and related insurance 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 health insurance carrier, using two key indicators to gauge value and performance.
The Benefit Monetization Ratio measures the annual total of monetized policies, offset by the operating cost ratio, a Balance Sheet line item derived from Net Asset Value and calculated to the Price Book Value.
Novus’ medical cannabis benefits package operates as an outside developer. It does not engage in any activities related to the cultivation, handling, transportation, growth, extraction, dispensing, sale, marketing, vending, delivery, supply, circulation, or trade of cannabis or any substances violating United States law or the Controlled Substances Act. The company adheres strictly to state and federal laws and has no intentions to violate them in the future.
It is important to note that statements regarding specific products have not been evaluated by the United States Food and Drug Administration (FDA) and should not be interpreted as intended to diagnose, treat, cure, or prevent disease. The information provided in press releases and product labels is for informational purposes only and should not be considered a substitute for advice from qualified healthcare professionals.
Novus respects the individual transactions involving cannabis, which are solely between state-licensed dispensaries and registered patients. However, it’s worth noting that state laws may conflict with the federal Controlled Substances Act. The current administration has indicated that federal law enforcement agencies will not prioritize prosecuting those complying with state-designated laws concerning medical marijuana usage and distribution. Nevertheless, changes in government policies and consolidation could impact the provider network, and there is no assurance that future administrations will not alter this stance.
While Novus does not engage in the harvest, distribution, or sale of cannabis or cannabis-related products, the company could be affected if there were any shifts in enforcement by federal or state governments concerning existing laws. Such changes could result in significant financial implications for Novus and other industry players.
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. Additionally, this press release that is not statements of historical fact may be considered 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, identify forward-looking statements. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future.
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