Novus is Granted Federal Charter to Conduct Business in Canada
Plans on Entering the Canadian Market in 2018
MIAMI, FL / ACCESSWIRE / September 7, 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, today announced that it has received approval to conduct business in the Canadian market.
Novus has attained a Canadian federal charter allowing it to conduct its business model across the entire country, versus having to incorporate in each province. Novus is currently rolling out its branding and sales initiatives in the provinces of Ontario, British Columbia, Quebec, Alberta and Saskatchewan. Since the Canadian regulation is federal, inter-province is legal, as opposed to the U.S. whereby it's intrastate only.
On July 1, 2018 Canadians will be able to purchase marijuana medically and recreationally, and, as always Novus has undertaken the foresight to be first to market in the medical cannabis sector. According to Deloitte the Canadian market is expected to grow to a $22.6 billion market by 2020, matching the United States as one of the top markets in the world. Novus believes that the Canadian marijuana market is advancing ahead of the U.S. in terms of establishing with federal regulation and pharmaceutical companies focused on discovering and potentially patenting marijuana-based cures.
The number of licensed medical marijuana producers in Canada has jumped by 20% in the second quarter of 2017 as the country dedicates more resources to processing and cultivator applications to meet its growing demand for cannabis. This increase in cultivators has positioned the industry to better meet Canada's growing demand for medical marijuana. The number of registered MMJ patients has tripled in the past year. The Canadian MMJ patient population is growing at a rapid pace, 10% on a month over month basis (1) (2) (3).
The Canadian health care system is a publicly funded system; similar to Medicare in the United States. Cannabis Medical Plans are not being openly offered but Canadians can use their health savings accounts to purchase medical cannabis, which can be deducted off their taxes. There is an opportunity for Novus Med Plans to offer its supplemental MMJ policy coverage.
As we develop actuarial assessments to our Novus benefit packages and believe Canada will experience more demand than supply, making the pricing higher, there are four notable opportunities that Novus will benefit from:
a) Recreational cannabis has the same benefits as medical, but medical has a greater taxation abatement, resulting in lower cost to the consumer especially when there is short supply; we estimate that recreational users will become medical users very quickly.
b) One of the channels of distribution will be the Canadian government, which will increase the number of producer licenses to be able to meet the demand of the Canadian patients.
c) Dispensaries and retail storefronts will not be proficient enough to meet consumer demand so Novus will focus on delivery providers to serve the Canadian MMJ patient population.
d) Digital marketing efforts will not be cost prohibitive since American and Canadian Internet protocol overlaps.
In June 2017, Shark Tank's, Kevin O'Leary was interviewed by "The Street" in this video he comments on Canada's strong growth rate.
Novus's CEO, Frank Labrozzi states, "There are three investment highlights that shareholders should take note of, (1) the Canadian market and legislation is outpacing the U.S. because Canada has legalized medicinal and recreational marijuana on the federal level making it easier to market and deliver cannabis medications to a potential 15 million patients, (2) the U.S. market potential covers 30 million qualified medical patients, and (3) by focusing on these rapidly growing markets Novus, can utilize its strong balance sheet and expanding roster of strategic partners to capitalize on opportunities and build its business."
Reference 1 http://www.businessinsider.com/deloitte-weed-could-be-226-billion-canada-2016-10
Reference 3 https://www.newcannabisventures.com/category/market-research/
We invite you to review the entire filing here: https://www.otcmarkets.com/stock/NDEV/filings
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, please visit: http://www.getnovusnow.com
For NDEV Q2 2017 and 2016 Annual Financial Filings: https://www.otcmarkets.com/stock/NDEV/filings
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
frank@ndev.biz
855-228-7355
Investors:
Hayden IR
hart@haydenir.com
917-658-7878
SOURCE: Novus Acquisition and Development, Corp.
