Business
Cannabis Companies Can Boost Value by Utilizing Novus' Business Model
Cannabis Companies Can Boost Value by Utilizing Novus' Business Model.
About this update from Novus Acquisition & Development Corp.
[{"type":"text","content":"Novus Named Once Again as Top 30 Stocks by InvestorPlace MagazineMIAMI, FL / ACCESSWIRE / January 13, 2020 / Novus Acquisition and Development, Corp. (OTC PINK:NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a health insurance carrier that contracts with cannabis cultivators, extractor/manufacturers and retailers as its in-network provider for its THC and CBD cannabis health plans. Today, Novus addresses how its health plan that includes cannabis is an ideal alignment for the major cannabis verticals to begin an era of profitability.The cannabis supply chain is considered a super charged engine with no brakes. The essential problem with the cannabis industry is mainly involved with cultivation and extraction known as the "Verticals" where the order of the day is, grow it, crush it and get it out the door. Correlating to unstable pricing and availability.This year shareholders will build more pressure for the Verticals to become profitable while faced with inventory buildup and/or pricing decreases. Novus' strategy for Verticals is tailoring health plan designs from a pass along rebate/discount on cannabis meds in the form known as "Usage-based Health Plans". Historically, health carriers offer members who can use these plans to keep cannabis meds affordable, at the same time maintaining higher volume and attractive profit margins for the Vertical.This method offers two options: a) proposition a larger markdown and make less money on the cannabis meds or b) offer a larger discount while also raising the list price of the cannabis, therefore keeping the net price level. We are seeing most Verticals selecting the latter option making the value prop to the average consumer more attractive.For its part, Novus CEO Frank Labrozzi, says, "We look forward to speaking with the Verticals as a part of a broader effort to familiarize them with Novus benefit plans, customized to the framework of the Verticals profit/yield model, drive exclusive traffic to their brands, at the same time deliver savings to patient/members and improve their health care experience."InvestorPlace Named Novus "30 Marijuana Stocks to Buy as the Future Turns Green" InvestorPlace, Josh Enomoto wrote: "Cynically, I may add that insurance providers don't benefit much from non-pharmaceutica...