New Alliances Leading to Increased Revenue
MIAMI, FL / ACCESSWIRE / November 19, 2019 / 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 third quarter ended September 30, 2019.
Key Financial Highlights for Q3 2019, Year-Over-Year:
- Revenues increased 21% to $56,014
- Cash balance increased 28% to $142,796
- Total assets increased 11% to $932,388
- Total shareholder equity increased 2% to $1,424,990
Key Business Highlights for Q3 2019:
- Executed a Managing General Agency (increasing agents to over 2,000)
- Integrated with a Second FinTech Insurance Platform
- Federal Government Appointing Health Reimbursement Act
- Accept Credit Cards for Policy Payments
Novus Signs Managing General Agency (MGA) with Healthfield Solutions, LLC
Novus executed an MGA Agreement with insurance entity Healthfield Solutions, LLC, to market the Novus Cannabis MedPlan. Healthfield Solutions will educate its arsenal of 1,600 agents, bringing total of over 2,100 agents that will sell and integrate Novus Cannabis MedPlan into their own dental, life, and supplemental health plans and sell it to their client base of over 250,000.
Integrated with a Second FinTech Insurance Platform
Ease.com is a benefits administration and HR FinTech platform for businesses with 2-250 employees, accessed by 1,200 insurance brokers. Ease.com digitally mapped Novus' benefit plans for easy quotation submissions that is accessed by 60,000 consumer visitors per month.
Additionally, employees who are enrolled by their employer can view via a dashboard a side-by-side plan comparisons with coverage details and the cost per-pay-period giving the employees the opportunity discuss benefit options with their dependents. Then confidentially modify important benefit details like plan summaries and policy variances to determine eligibility at their discretion.
Health Reimbursement Act
On June 2019, the White House newly adopted Health Reimbursement Arrangement (HRA) that gives the American worker a choice to add cannabis to their health plans along with certain privacies from employers. An HRA is an employer-financed health plan used to reimburse employees tax-free for out-of-pocket medical expenses and individual health insurance premiums. How this works is the employer furnishes a defined contribution on behalf of the employee, and the employee can choose the type of insurance coverage and apply unused funds to be rolled over from year to year. For example, an employer could fund an HRA for each worker and their family, which they could then use to shop for a plan that best suits their needs. The White House estimates that as many as 800,000 employers, mostly smaller businesses, will choose this option, expanding healthcare choices for 11 million workers. These changes give employees more control over their healthcare dollars of which they were denied a choice in the past.
Over the past 10 years, the American consumer has witnessed healthcare costs and deductibles accelerating at three times inflation since 2008. So, the communication strategy will be an educational message offering reimbursement-based health benefits that is easy to understand. We have begun by a) increasing our 500 plus agent/affiliates nationwide with an agreement that was singed with Healthfield Solutions , and, b) branding initiatives via direct-to-consumer marketing has begun during the 2020 open. enrollment.
Credit Cards for Policy Payments
For years management has been searching for a processor to provide transactional ACH/credit cards as opposed to collecting checks through the mail. After being shut down by banks and/or merchant providers in the past Novus has finally established a relationship with Authorize, a leading credit card processing platform. Novus' workaround strategy was that we don't touch or sell the plant, we provide insurance benefits to patient/members and this appears to be satisfactory since initiation in September 1, 2019.
We are witnessing relaxing banking policies thanks to the effort of The SAFE Banking Act of 2019 (The Act) introduced by U.S. Senator Bob Menendez, a senior member of the Senate Banking Committee. Notwithstanding the denial from the inflexible banking system due to the threat of being prosecuted under federal law, this has not the stopped Novus' progress in the booming cannabis industry, but it certainly helps by reducing as many regulatory impediments as possible.
Novus' Chief Executive Officer, Frank Labrozzi, commented, "There's no doubt that publicly-traded cannabis stocks, both in Canada and the U.S., have been hit hard this year and are out-of-favor in a bear market for the sector. This underperformance has several contributing factors, ranging from weak sales numbers that have fallen short of expectations, disappointing retail rollout and the recent vaping crisis. But this has not stifled Novus' growth."
Financial Results for the Three Months Ended September 30, 2019:
Revenue increased by $9,619 or 21% to $56,014 for the three months ended September 30, 2019, as compared $46,395 for the three months ended September 30, 2018. The growth was primarily due to greater awareness and 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 increased usage.
The Company's Balance Sheet remained strong with an increase in the cash balance to $142,796 and Shareholder Equity to $1,424,990.
Financial Results for the Nine Months Ended September 30, 2018:
Revenue increased by $30,561 or 23% to $161,377 for the nine months ended September 30, 2019, as compared to $130, 816 for the nine months ended September 30, 2018. This increase was primarily due to increased awareness and visibility of the Novus MedPlan offering and the improvement in key performance indicators (KPI) in the Company's in-house marketing efforts, which resulted in a great number of lives covered.
Novus Cannabis MedPlan business model is clearly the most unique niche in the cannabis industry will only continue to grow. We invite you to review the following:
- 2019 Q3 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
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
SOURCE: Novus Acquisition and Development Corporation
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