Telemedicine, Insurance Broker Participation, Provider Engagement Drive Growth For 11 Consecutive Quarters
MIAMI, FL, May 28, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Novus Acquisition and Development, Corp. (OTC Markets: 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 reported financial and operational results for its first quarter ended March 31, 2019.
First Quarter 2019 Highlights:
- Revenue increased 26% to $51,674 for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018
- 11 consecutive quarters of revenue growth
- Demonstrated a 34% profit margin pricing structure in its business model for the three months ended March 31, 2019
- Net income decreased 27% to $17,480 for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018, due to the investment in the Telemedicine platform
- No dilution to the total shares outstanding for this quarter, and no insider sales from management or directors
- Shareholder equity remained strong with an increase to $1,398,457at March 31, 2019, from $1,395,552 at December 31, 2018
- Cash and Cash Equivalents increased to $132,653 at March 31, 2019, from $115,173 at December 31, 2018
Management Discussion and Analysis
Novus’ Chief Executive Officer, Frank Labrozzi, commented, “Our first quarter results demonstrate the scalability of our Novus Cannabis MedPlan platform as we generated record quarterly revenue with growth in all of our key performance indicators. Cannabis cultivators, manufacturers and dispensaries are realizing Novus’ value by driving customers to their storefronts with higher than average monthly med purchases and gratuitous local advertising effort. We continue to see more and more medical cannabis cultivators, manufacturers and dispensaries opening in legalized medical states and the proliferation of CBD across the country. As the legalized cannabis jurisdictions expand and the current legalized states add licenses, our Provider Network gains value to the cultivators, manufacturers and dispensaries.”
Cultivating the Telemedicine Business Model
As announced in February 2019, Novus has now launched its own dedicated cannabis telemedicine platform. The new platform went live in April initiating new multi-revenue streams for Novus and its providers.
Telemedicine technology allows healthcare practitioners to consult with patients in real-time via telecommunications technology to evaluate, diagnose and treat patients remotely. Telemedicine is attracting attention globally and is seamlessly suitable for medical cannabis and traditional health insurance benefits.
Management has refined its cannabis telemedicine business model to a free platform to our Provider Network that will acquire and retain more patient/ members as policy holders while creating multiple revenue streams by selling advertising to lucrative markets in pharmaceutical, biopharmaceutical, and Over-the-Counter (OTC) Drugs Market in the United States and Canada.
Patients that visit Novus’ platform will be particularly interested by advertisers since there is a Direct-to-Consumer advertising benefit during certain behavioral patterns, such as, during a doctor’s consultation. Source: Research and Markets http://bit.ly/2LyNNTX
Two factors in our research extrapolated that:
- Healthcare and pharmaceutical industry digital advertising spending in the United States from 2011 has gone from $1.4 billion to $3.14 billion projected in 2019. Source: Statista http://bit.ly/2JfK4c7
- 64% of consumers point to convenience and access as an important benefit of virtual health improved by staying connected with doctors, caregivers and dispensaries that will enhance patient satisfaction. Source: Deloitte: http://bit.ly/2YpTCF3
Delivery and Sales of Novus Cannabis Telemedicine Platform
Novus has contracted with Smarty Ads to act as a Supply-Side Platform (SSP) which is a software that delivers for advertisers, their ads, on a competitive bid basis through an automated system that will deliver the digital ad on Novus’ Telemedicine Platform. There will be no extra sales staff or ongoing expenditures for this effort since the SSP will remit and collect all the bids that are available on Novus’ advertising space in real time.
Now patients can connect with Novus’ online platform with a physician across U.S. and Canada from the convenience of their own digital device. Delivering what many patients require is autonomy, free medical cannabis certifications with connection to our in-network dispensaries that can recommend/procure appropriate med strains.
This amplifies Novus’ business model with a much more tactical advantage in creating multiple revenue streams for Novus and their partnered providers, in areas of:
- Free telemedicine as an ongoing policy-holder
- Free cannabis card consultation for a purchase of a long and short-term health policy
- Remote prescribing
- Allow patients direct access to dispensaries for the fulfillment of meds
- Give our 450 insurance agents /affiliates the sales tool for individual and group sales
- Access new patients in rural areas
- Break the barrier of distributing medical cannabis information practitioners and patients
Novus Cannabis MedPlan business model is clearly the most unique niche in the cannabis industry and will only continue to grow. We invite you to review the following:
- 2019 Q1 Filing: Click Here
- Executive Summary: Click Here
- Quote: Click Here
- Website: Click Here
- Investor's Page: Click Here
- How Insurance Companies are Evaluated: Click Here
- Media Coverage Click Here
Financial Results for the Three Months Ended March 31, 2019:
Revenue increased by 26% to $51,674 for the three months ended March 31, 2019, as compared to the three months ended March 31, 2018. The growth was primarily due to greater awareness and visibility of the Novus Cannabis MedPlan offering an increased number of strategic partners and dispensary providers. The improvement in key performance indicators (KPI) in the Company’s in-house marketing efforts, resulting in a greater number of providers, patient members and lives covered.
Operating and Net income remained strong at $17,480 for the three months ended March 31, 2019. This represents a 27% operating profit margin for the three months ended March 31, 2019.
The Company’s Balance Sheet remained strong with an increase in the cash balance to $132,653 and the Net Asset Value (NAV) of $1,398,457.
Capital Structure, Shares Outstanding and Trading as of March 31, 2019:
- No Convertible Notes
- 97,853,624 common shares issued and outstanding
- No sales of insider shares since the third quarter of 2015
We invite you to review the entire filing here: https://www.otcmarkets.com/stock/NDEV/filings
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.
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 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Chairman and CEO