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 reported financial and operational results for its second quarter ended June 30, 2018.
Second Quarter 2018 Highlights:
- Revenue increased 39% to $43,360 for the three months ended June 30, 2018, as compared to the three months ended June 30, 2017
- 8 consecutive quarters of revenue growth
- Commenced collaboration with Enlighten
- Demonstrated 60% profit margin (EBITDA) pricing structure in business model
- Net income increased 126% to $25,860 for the three months ended June 30, 2018, as compared to the three months ended June 30, 2017
- Shareholder equity remained strong at $1,415,968 at June 30, 2018, decreasing slightly from $1,422,777 at March 31, 2018
- Cash and Cash Equivalents increased to $109,678 at June 30, 2018, from $106,271 at March 31, 2018
8th Consecutive Quarters of Sequential Increase in Revenue:
Novus’ Chief Executive Officer, Frank Labrozzi, commented, “As legalized medical cannabis continues to expand state by state, our goal for 2018 was to increase the visibility and awareness and ramp the covered lives of Novus Cannabis MedPlan. I am proud to report our 8th consecutive quarter of revenue growth and we are in great position to accelerate our market penetration and growth in the second half of 2018. Our confidence is due to our recently signed collaboration with Enlighten and having successfully added 13 dispensaries, cultivators and manufacturers that offer anywhere from 30% to 50% on cannabis medications to the Novus Cannabis MedPlan patient member base. Additionally, we are optimistic that many of the open discussions with potential strategic partners, medical cannabis businesses and dispensaries will result in signed agreements and roll-out over the remainder of 2018 and deliver further growth for 2019. Medical cannabis regulation continues to gain populous support due to its medical health benefits and is now approved and regulated in 30 U.S. states. We look to continue to be at the forefront of adding value to both medical cannabis consumers and businesses in an underserved and inefficient market.”
During the second quarter of 2018, Novus commenced business collaboration with Enlighten, a multifaceted cannabis technology company. Novus will utilize Enlighten’s interactive television technologies in a revenue sharing deal. Enlighten will place Novus’ message at the point of sales in 650 dispensaries across the country with advertising to engage and educate consumers on the Novus Cannabis MedPlan. When consumers are engaged Novus will get analytics of verified impressions from the consumer mobile devices for retargeting.
Enlighten’s technology solutions include interactive signage to inform and educate customers or employees, a retail analytics portal, integrated technology solutions to aggregate and systemize product offerings and internal operations, and tailored marketing solutions for product brands. Enlighten offers brands across the country with the unique ability to reach a targeted demographic with engaging advertisement right at the point of sale.
Overall market sentiment towards legalized cannabis has turned more favorable over the past couple of months, after a challenging end of 2017 and into the beginning of 2018. With Jeff Sessions’ anti-cannabis sentiments lifted, no significant actions taken by the Federal government and President Trump openly respecting the States’ positions on cannabis, investors and operators have all jumped back in with their pre-2018 aggressive and investment plans.
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