Additional States and Outlook for 2017
MIAMI, FL / ACCESSWIRE / January 17, 2017 / Novus Acquisition and Development, Corp. (OTC PINK: NDEV), through its wholly owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation's first carrier/aggregator offering a cannabis health plan, announced today that its Novus MedPlan has met the compliance standards to sell its MedPlan in Massachusetts, New York and Connecticut.
Currently there are now 29 states that have approved legalized medical cannabis of which 23 million potential patients qualify for some sort of legal cannabis nationwide. The states listed below are the states that can sell the Novus MedPlan:
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Management Discussion & Analysis For 2017
As we head into 2017, with a new President, legal cannabis states that have revised laws, and new states that approved cannabis, is a milestone for the industry. We continue to expand the availability of the Novus MedPlan in additional legal cannabis states. The process is arduous, dealing with each State Department that regulates insurance laws, cannabis laws, securities laws and fiduciary requirement laws, making it a tedious and lengthy process.
Being the first to bring health coverage to the legal cannabis segment gives Novus a competitive advantage over other insurance companies. Since legal cannabis is not federally approved, the trepidation of competing insurance entities getting into cannabis could result in a loss of their lucrative Medicare and Medicaid contracts. Novus' objective is to be compliant on a state level and since we never take possession of the plant we don't have any risk of state line issues, brought by evidence of a our legal opinion written by the firm Vicente Sederberg the leading cannabis law firm in the country.
The barrier of entry aside from insurance compliance is engaging with cannabis cultivators, manufacturers and dispensaries that we call our "Provider Network" or "Provider(s)". These Provider(s) are typically early stage companies and the due diligence to determine their criteria of Provider financial validity is cumbersome and getting them to gain trust in corporate America is burdensome, but Novus is and has accomplished this undertaking.
As new and existing legal cannabis states struggle with cannabis rules and regulations, some states struggle with developing markets, but it has been our determination to continue to file with states prior to their markets developing. With cash on hand, no debt or toxic financing and extremely low overhead, Novus' intrinsic value currently comes from our infrastructure expansion in legal cannabis states and diversified insurance lines.
We have overcome impediments in 2016 by stabilizing depository relationships with banking entities. Solving complexities of Internet companies not allowing our digital marketing to be placed on ad exchanges, resulting of bringing our advertising efforts in-house, where we have improved efficiencies from six thousand digital impressions per month to 1.7 million impressions with a 3-5% engagement rate in the month of December 2016 alone.
Our optimization curve on our digital ad placement platform is still being tweaked and our access to this digital marketing technology will give us the ability to increase to approximately 5-6 million viewers per month within the next 30-45 days. Our platform gives us, Big Data access, such as Nielson, whose technology allows us to target an audience who is looking for health insurance at the time the consumer is in a buying mode. In addition we have implemented a "Beaconing" technology, which allows us to create a beacon over certain locations (within 5 meters of an address) targeting the consumers location through their mobile device. Then once the consumer returns to their location of business or residence their WIFI will pick up that data and create a cross device digitization for re-targeting purposes. This technology can target consumers that visit every dispensary, every MMJ venue within our geo-demographic region. This is known as conquest marketing, to reach the consumers based on behavior, location and the most impressive, targeting consumers that have visited these locations as far back as 1 year.
Insurance Diversification
Our core business is health in legal cannabis, liability, annuities and accident insurance lines. It is our contention that we believe that smart money focuses on diversity and the competitive advantage of being an insurance company. It is imperative to let shareholders know that our focus is the cannabis sector, but understand as our popularity grows, we are being approached by other entities that grant us opportunities in diversified insurance lines that can't be ignored.
By way of comparison the next 5 years insurance lines that will increase by triple digits are the following areas:
- Legal Cannabis: Projected $20 billion
- Freight Trucking: Projected $1.2 trillion
- Full Health Care: Projected $1.7 trillion
And Novus wants a portion of the above mentioned market share and as a shareholder we want you to gain value with respect to being diversified.
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.
- For more information, check out: http://www.getnovusnow.com
- For NDEV 3rd Quarter Financial Filing: http://bit.ly/2hNHQSg
- Learn How Insurance Companies Are Evaluated: http://bit.ly/2ddIYva
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 Medical Group 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
[email protected]
855-228-7355
Investors:
Hayden IR
[email protected]
917-658-7878
SOURCE: Novus Acquisition and Development, Corp.