Accelerates Growth As Its MedPlan Is Integrated With Fully Guaranteed Issued Carrier Health Plans
MIAMI, FL / ACCESSWIRE / November 16, 2020 / Novus Acquisition and Development, Corp. (OTC PINK:NDEV), through its wholly-owned subsidiary WCIG Insurance Services, LLC., is an insurance entity in health and, the nation's first carrier offering cannabis health plans to recreation and medicinal users, today reported, its financial and operational results for the three months ended September 30, 2020.
Novus contended for 3 years to gain the interest of Third-Party Administrators that managed employee benefits for major health carriers to no avail. Then a series of breakthroughs occurred, with execution of deals that integrated Novus cannabis benefit packages with health carriers guaranteed issued insurance plans.
This has been our most notable event since entering as a health insurance entity that includes cannabis in health plans to the mainstream. What makes this so unique is:
a) For the carriers, our cannabis benefit packages can entice new customers and as a mechanism to upsell to current members,
b) Transpiring Novus from being a Discount Medical Plan to a field of designated healthcare carrier with the premier level of guaranteed health coverage
Novus' CEO, Frank Labrozzi, stated, "We foresee future success as we engage more health carriers through their Third-Party Administrators. Opening up greater opportunity through group distributions combined with our existing individual sales. Our business model objective has never changed, to position ourselves as a high growth insurance entity with minimal risk translating to a probable higher than average P/E ratios which insurance companies are accustomed to."
Notable Third Quarter Accomplishments:
- Medova Healthcare Agreement Executed
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. Click Here To Learn More
- Unique Insurance Concepts UIC Agreement Executed
Unique Insurance Concepts is a consortium of health insurance agents that focuses on group policies, Medicare supplements, dental and critical illness to over 5,000 corporate clients. Click Here To Learn More
- Go Enroll / Elevate Wellness
One of the nation's top InsureTech platforms targeted for large groups with over 92,000 clients. In plan choices, employees can integrate cannabis to their benefits with Dental, Vision, GAP and Medical Plans. Elevate Wellness covers over 4,500 employers where their employees are allowed to choose alternative treatment options that may not be available through their traditional healthcare providers. Click Here To Learn More
- Canna Group LLC:
Canna Group specializes in electronic payment solutions for all high-risk businesses. Announced in a press release titled "Revolutionary Medical Cannabis/CBD Supplemental Insurance Coverage" Canna Group will sell Novus' MedPlans to their client base.
Founder Sami Spiezio, "stated we are proud to partner with such an innovative company as is Novus and look forward to providing a service to help benefit those in need". Read Entire Press Release Here\
Third Quarter 2020 Financial Highlights:
- Revenue increased $5,285 or 9% to $61,299 for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019
- Revenue increased $18,909 or 12% to $180,286 for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019
- Demonstrated a 34% profit margin pricing structure in its business model for the three months ended September 30, 2020
- Net income increased $5,325 or 35% to $20,686 for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019
- Net income increased $18,909 or 12% to $20,686 for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019
- Shareholder equity increased to $1,465,967 at September 30, 2020, from $1,426,431 at December 31, 2019
- Cash and Cash Equivalents increased to $157,888 at September 30, 2020, from $149,822 at December 31, 2019
- No Dilution
- Secured First Health Carrier to Integrate Cannabis in a fully guaranteed health insurance
- Successfully implemented Covid-19 Crisis Management Strategy to retain current patient /members that have been laid off or loss of employment.
Financial Results for the Three Months Ended September 30, 2020:
Revenue increased by $5,285 or 9.4% to $61,299 for the three months ended September 30, 2020, as compared $56,014 for the three months ended September 30, 2019. The growth was primarily due to expansion into new territories, market awareness/visibility of the Novus Cannabis MedPlan offering and an increased number of strategic partners, dispensary providers and lives covered. The Healthcare Reimbursement Act and the acceptance of credit cards for policy payments has facilitated growth.
Income from operations increased by $5,325 or 34.7% to $20,686 for the three months ended September 30, 2020, as compared $15,361 for the three months ended September 30, 2019.
The Company's Balance Sheet remained strong with an increase in the cash balance to $157,888 and Shareholder Equity to $1,465,967.
Financial Results for the Nine Months Ended September 30, 2020
Revenue increased by $18,909 or 11.7% to $180,286 for the nine months ended September 30, 2020, as compared $161,377 for the nine months ended September 30, 2019. Income from operations increased by $7,653 or 14.2% to $61,578 for the nine months ended September 30, 2020, as compared $53,925 for the nine months ended September 30, 2019.
Research Novus Now:
- Financial Filings: Click Here
- Quote: Click Here
- Website: Click Here
- Investor's Page: Click Here
- How Insurance Companies are Valued: Click Here
- Source: "Total expenditures in millions by source of payment and insurance coverage, United States, 2017," Center for Financing, Access and Cost Trends, Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey, 2017, https://meps.ahrq.gov/mepstrends/hc_use/.
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
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SOURCE: Novus Acquisition and Development, Corp.