Novus Reports Q3 2016 Results and Achieves Milestones

Quarterly Report Show Increase Revenues and Improved Balance Sheet
Key Business Milestones Achieved in Coverage and Marketing
Well Positioned for Growth in 2017

MIAMI, FL / ACCESSWIRE / November 16, 2016 / Novus Acquisition and Development, Corp. (OTC Markets: NDEV), the nation’s first healthcare insurance carrier/aggregator in the medical cannabis sector, today announced its third quarter results for the period ended September 30, 2016. The culmination of five years of hard work, laying the groundwork and $7 million of paid-in capital has fortified the company’s infrastructure and positioning and has led to many milestones being achieved in the quarter.

Novus through its wholly owned subsidiary WCIG Insurance Service, Inc., is a California insurance brokerage entity. Novus initiated its insurance business model within the medical marijuana space where it can render risk and non-risk insurance models in Washington, Oregon, Hawaii, Michigan, Arizona, Colorado, California, Washington, and Vermont to sell benefits packages in addition to medical marijuana CBD concentrate, dental, vision, diabetic supplies, prescriptions, hearing, and other integrative medicines. The Novus provider network has taken some time to build out in having either contracted or contracts pending with over 100+ dispensaries to participate in our insurance network.

Chief Executive Officer Frank Labrozzi, stated, “It has taken a year to build the insurance regulatory and technological infrastructure to operate as a medical marijuana health plan. Since we entered into this space, we have had difficulties in getting our branding out through traditional advertising segments. However, we now have approvals to allow our marketing and advertising to be disseminated through digital ad exchanges, unabated. Therefore, we can launch aggressive marketing campaigns. Despite the impediments that are inherent to the cannabis space, we are still achieving our goals.”

Key Milestones Achieved in Q3 2016

Revenues increased 35% with net profit of 54%
Improved balance sheet; increased cash balance to $60,000 and NAV to $1.25 million
Increased coverage included the entire states of California and Arizona
Introduction of worker compensation package to capture market share in the recreational space
Success in social networking
Identified digital marketing breakthroughs with a strategy to execute going forward

Financial Overview: Revenue increased by 35% for the three months ended September 30, 2016, from the second quarter of 2016. The balance sheet improved with the cash balance increasing to $60,000 and the Net Asset Value increasing by 25% from $1,052,594 to $1,252,585. The company is starting to see that banks are more willing to take deposits on companies that do not handle the cannabis plant as opposed to 2015 and earlier in 2016. And, we are beginning to see our cash flow improve by 100% simply due to implementing in-house marketing program.

Coverage: Completion of covering the entire states of California and Arizona, equating to 57% of the entire cannabis market.

Worker Compensation Package: We have begun a Worker’s Comp package in California to allow us to give cannabis related products to injured workers, allowing Novus to capture a portion of recreational users.

Overcoming Marketing and Advertising Impediments: Each state has their own rules and regulations on marketing and advertising relating to cannabis related meds and products. To make matters more difficult medians such radio, television and digital advertising (Social Networking, Google Adwords, Pay Per Click, Pay Per Acquisition) have rejected by these Internet giants. The company has utilized many third party marketers to brand and patient procurement, only resulting in high Return on Investment (ROI) or lack of performance all together by the third party vendors. This prompted to bring our marketing initiatives in-house and hire the right assets to implement them. A direct result in our 100% increase of cash flow.

Social Networking Success: Digital ad dissemination on Twitter, Facebook and LinkedIn has given us much needed branding and lead generation. Since August the company has gone from 10,000 impressions to 400,000 impressions per month with a 1% engagement rate to our sales funnel, an increase of over 4,000% at a fraction of the cost for third party marketers. Our projected estimate by year-end is that we will be able to triple that by getting approximately 1,000,000 monthly unique views to our digital ads.

Digital Ad Dissemination with Ad Exchanges: Ad exchanges with their technology platforms facilitate the buying and selling of media advertising inventory from multiple ad networks. The approach is algorithmic technology-driven as opposed to the historical approach of negotiating price on media. Data is produced in real time by Nielsen that geo targets consumers that have engaged in certain behavioral activities on the Internet. There are 50 notable digital ad exchanges of which we have identified 10 exchanges that will allow advertising that contain the word “marijuana” and/or “cannabis.” It is our determination that this will be a game changer not only for Novus but also for the medical cannabis industry as a whole.

Programmatic Marketing Proximity Targeting: This technology helps our marketing efforts reach demographic audiences down to the proximity of our target consumer. This is the best utilization of quality data that can identify our target audience down to every storefront, venue within our target audience. For example, since we can target consumers via categories like if they visit pain clinics and capture their information on either mobile or desktop devices, or reach consumers when they are at a dispensary and send an opt-in advertisement about Novus. This precision targeting is done by gathering accurate data from Factual, similar to Google Maps but allows closer proximity than Google Maps and a customizable location based, geo-fencing, and consumer activity via app on mobile devices down to 1 meter. This quick video proximity marketing will surely convince you that Novus is taking the right route towards their marketing effort: https://vimeo.com/120834432.

NDEV 3rd Quarter Financial Filing:

http://www.otcmarkets.com/financialReportViewer?symbol=NDEV&id=162770

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 positioned itself to gain market share within many lines of insurance business within and outside of the MMJ sector.

Novus 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, check out: http://www.getnovusnow.com
For NDEV 3rd Quarter Financial Filing: http://www.otcmarkets.com/financialReportViewer?symbol=NDEV&id=162770
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.

ReleaseID: 449094