Novus Shows Positive Momentum In Year End Statements
Quarterly Revenues Increased 16% Sequentially
10-Fold Improvement in Key Performance Indicators in 2nd Half
2016
Net Asset Value Increased 9%
MIAMI, FL -- March 27, 2017 -- InvestorsHub NewsWire
-- 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 nations first
carrier/aggregator offering a cannabis health plan, today reported
financial and operational results for the three and twelve month
period ended December 31, 2016. Additionally, the Company is
pleased to provide an update to the milestones it has achieved over
the past few months as it has strengthened its infrastructure and
positioning for future growth.
Key Milestones Achieved in Q4 2016
- Gross revenues increased 16% sequentially to $24,482
- Operating and Net income growth of 35% to $16,285 for a 35%
profit margin
- Net Asset Value increased 9% to $1.4 million
- Improved in-house marketing efforts, reaching 1,000,000
impressions per month with an average of 0.7% engagement
Opening Statement:
Novus is the first of its kind to enter into the legal medical
cannabis space as an insurance entity and continues to blaze the
trail with its unique business model. With a low fixed overhead,
Novus is pleased to demonstrate positive trends in many facets of
its efforts in creating an insurance market in the legal medical
cannabis and other niche insurance segments.
Financial Statements:
Quarterly Revenue increased by 16% sequentially to $24,482 for
the three months ended December 31, 2016, from the third quarter of
2016. This increase was primarily due to the improvement in key
performance indicators (KPI) in the Companys in-house marketing
efforts. In 2016, Novus KPI increased from 10,000 unique
impressions per month in August to over 1,000,000 impressions per
month with a 0.7% engagement rate by year-end. This positive trend
has continued to transcend higher in the first quarter of 2017.
Novus implementation of its marketing strategy mix will continue to
increase, despite the fact that traditional marketing for insurance
products are much different than marketing in the legal medical
cannabis market.
Operating and Net income growth of 35% to $16,286 for a 35%
profit margin for the three months ended December 31, 2016.
The Companys Balance Sheet remained strong with the cash balance
of $53,984 and the Net Asset Value (NAV) increasing 9% over the
sequential quarter to $1,387,317.
Stock Price and Capital Structure:
While the Company is not required to, and does not normally
comment on its stock price, it will be addressed due to the many
inbound shareholder inquiries. Many Cannabis Index stocks have
increased volatility in price and in volume. Novus is no different,
with a lot of positive attention due to the Companys niche business
model, the stock price rose from $0.02 in August 2016 to as high as
$1.51 in December 2016. Of note, 200+ publicly traded cannabis
stocks (see SeekingAlpha contributor: http://seekingalpha.com/author/anthony-cataldo)
had been highlighted prior to, through and after the November 8
ballot initiatives. This entire group of stocks all increased
in visibility and awareness and all saw a dramatic increase in
stock prices and liquidity. Novus, while declining from its highs,
is still considerably higher on increased volume from pre-November
elections time period. The Company believes its strategy and
positioning in offering a revolutionary supplemental risk and
non-risk medical insurance plans has been well received by
investors.
Insurance Valuations:
Conventional valuation analyses can demonstrate how investors
might want to review how an insurance company is valued. By
focusing on a companys balance sheet equity divided by the amount
of shares issued an approximate valuation can be determined at an
approximate multiple of 20 times for emerging growth companies.
Dilution Factor:
The Company did not raise any capital in 2016. All sorts of
institutional convertible notes with variable toxic pricing
structures approached the Company. Novus did not take and will not
consider any such capital as to protect its shareholder equity.
Insider/Affiliate Holdings:
In 2016, Company insiders and affiliates have not liquidated any
of its holdings nor have taken any cash salary compensation for the
preservation of the shareholder value. Common Shares Issued and
Outstanding: direct from Company filings at OTC Markets
https://www.otcmarkets.com/stock/NDEV/filings
As of December 31, 2016: 92,453,624 of common shares issued and
outstanding
As of December 31, 2015: 88,953,624 of common shares issued and
outstanding
*The increase in shares issued and outstanding is from
stock-based compensation to CEO Frank Labrozzi and investor
relations firm Hayden IR. Both issuances are in lieu of any cash
compensation.
Closing From The CEO
2016 was successful with the establishment of the Companys
infrastructure platform, creating a solid fundamental base for us
to build upon. We also initiated our marketing rollout and brand
objective plans, with our continued low overhead strategy, and we
are seeing positive trends. Our financial position and operating
business metrics improved throughout 2016 and we look forward to
continuing to build upon this effort in 2017.
The following are key objectives for 2017 to achieve success for
Novus and its shareholders:
- Increase our efforts in our marketing mix and increase our
brand influence
- Execute partnerships with well-known brands to increase
visibility and awareness and attract patient members
- Expand our compliance to expand into additional states
- Move into Canadian provinces
- Build our Balance Sheet with more patient members signups
- As our burn rate has decreased we are now in a position to
start acquisitions within the insurance industry to build our net
asset value
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.
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