Novus Reports First Quarter 2024 Demonstrating Continued Growth

Novus Acquisition & Development Corp (OTC Markets: (NDEV) is a leading national supplemental health insurance carrier that offers cannabis integrated into health plans for recreational and medicinal users. Today announced its March 31, 2024, Interim Report, showcasing financial growth, updates on cannabis rescheduling regulations, and strategic partnerships for market expansion.

Financial Highlights:

In line with its commitment to transparency and financial integrity, Novus provides critical insights into its business model and financial condition:

•     No Dilution: No common stock has been issued after June 15, 2021, demonstrating its dedication to preserving shareholder value.
• No Sales of Insider Shares: No selling of insider shares for close to three years.
• Revenue Growth: Novus reports a 6.8% increase in gross revenue during the reporting period compared to March 31, 2024, and 2023, respectively.
• Enhanced Profitability: The reporting period also witnessed a 19.47% increase in EBITDA compared to March 31, 2024, and 2023.
• Margin Improvement: Novus experienced a gradual increase in gross profit margins, reaching 45.2% in 2024 compared to 43.14% in 2023.
• Strengthened Financial Position: There was an increase of 1.8% compared to the financial reporting periods on March 31, 2024, and December 31, 2023. This contrasts the higher increase of 6.84% from March 31, 2023, to 2024.
• Responsible Debt Management: CEO Frank Labrozzi's debt of $158,061 projects no exercise of a call provision, nor is there a demand equity conversion provision in the debt instrument.
•     Vendor Share Policy: Novus emphasizes its commitment to responsible shareholder practices by implementing a structured approach to vendor share sales. Contractually, all vendors receiving treasury-issued stock must gradually sell their shares based on a leak out of 15% of the average daily trading volume over the past 30 days, ensuring market stability and fair distribution of shares.

Cannabis Reclassification:

The Biden administration announced an interim rule that would reclassify cannabis for the first time in over half a century. The Drug Enforcement Administration (DEA) is set to approve an opinion that cannabis will be reclassified from Schedule I to Schedule III. This move would recognize the plant's potential medical benefits and pave the way for further research.

SAFER Banking Act

Rescheduling cannabis is an essential step towards passing the SAFER Banking Act. This act aims to achieve several objectives, such as mitigating safety risks, expanding access to capital and credit, enhancing transparency and accountability, and promoting growth in the cannabis industry. Moreover, it offers particular protections and funding opportunities for issuers and investors in the capital markets.

Management Commentary

"The recent reclassification of cannabis is a significant turning point for the industry," stated Frank Labrozzi, CEO of Novus. "Novus is in a strong financial position, has formed strategic partnerships, and is committed to responsible business practices. This puts us in a great position to be a leader in the changing landscape of cannabis health insurance, as cannabis becomes more mainstream in consumer health plans."

Expansion into the Midwest:

Novus is excited to announce its new partnership with Heya Wellness as part of its expansion into the Midwest region. This collaboration will allow Novus to provide its services to up to 4.3 million potential policyholders who are cannabis users by leveraging Missouri's reciprocity laws. This expansion is a significant milestone for Novus as it aligns with its broader mission to make healthcare solutions more accessible to a wider audience.

Conclusion:

Novus Cannabis MedPlan's integration of cannabis benefits into health plans is promising for the future. Integrating cannabis benefits into health plans could improve patient outcomes, reduce reliance on traditional pharmaceuticals, and alleviate the burden on healthcare systems. To stay ahead, Novus Cannabis MedPlan must remain innovative, patient-centric, evidence-based, and strategic in its partnerships. Its efforts will significantly impact the integration of cannabis benefits into mainstream healthcare plans, ultimately improving the quality of life for countless individuals.

About Novus

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Novus Acquisition & Development Corp. (NDEV) operates through its subsidiary, WCIG Insurance Services, Inc., offering health insurance and related insurance solutions in states with legal medical marijuana programs. With a robust infrastructure covering various insurance lines, including health, life, and fixed annuities, Novus is a leading health insurance carrier, using two key indicators to gauge value and performance.

The Benefit Monetization Ratio measures the annual total of monetized policies, offset by the operating cost ratio, a Balance Sheet line item derived from Net Asset Value and calculated to the Price Book Value.

Novus' medical cannabis benefits package operates as an outside developer. It does not engage in any activities related to the cultivation, handling, transportation, growth, extraction, dispensing, sale, marketing, vending, delivery, supply, circulation, or trade of cannabis or any substances violating United States law or the Controlled Substances Act. The company adheres strictly to state and federal laws and has no intentions to violate them in the future.

It is important to note that statements regarding specific products have not been evaluated by the United States Food and Drug Administration (FDA) and should not be interpreted as intended to diagnose, treat, cure, or prevent disease. The information provided in press releases and product labels is for informational purposes only and should not be considered a substitute for advice from qualified healthcare professionals.

Novus respects the individual transactions involving cannabis, which are solely between state-licensed dispensaries and registered patients. However, it's worth noting that state laws may conflict with the federal Controlled Substances Act. The current administration has indicated that federal law enforcement agencies will not prioritize prosecuting those complying with state-designated laws concerning medical marijuana usage and distribution. Nevertheless, changes in government policies and consolidation could impact the provider network, and there is no assurance that future administrations will not alter this stance.

While Novus does not engage in the harvest, distribution, or sale of cannabis or cannabis-related products, the company could be affected if there were any shifts in enforcement by federal or state governments concerning existing laws. Such changes could result in significant financial implications for Novus and other industry players.

Forward-Looking Statements

This release includes forward-looking statements, which are based on certain assumptions and reflect 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. Dilution, if any, would be for the purposes of management taking stock in lieu of cash salary. 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. Additionally, this press release that is not statements of historical fact may be considered to be forward-looking statements. Written words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future.

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