Leveraging Reimbursement: How Novus Supports MSOs Facing Post-Reclassification Obstacles

About this update from Novus Acquisition & Development Corp.

Compliance-Engineered Framework: Optimizing Cannabis Distribution via Structured Reimbursement and Recurring Annual Monetization of MSO Balance Sheets and Income Statements MIAMI, FL — June 3, 2026 — Novus Acquisition & Development Corp. (OTC: NDEV), operating as Novus Cannabis MedPlan—a pioneer in integrating cannabis into supplemental health insurance plans via its wholly-owned nationwide reciprocal carrier, WCIG Insurance Services, Inc.—today launched an optimized dual-benefit framework engineered to align healthcare compliance with alternative therapies. This high-margin gateway uses a compliant prescription drug plan (PDP) as its primary vehicle, enhanced by secondary cannabis and CBD policy benefits. The model drives long-term consumer retention and increases high-value foot traffic to partner Multi-State Operator (MSO) storefront footprints. Novus enables MSOs to fortify their balance sheets by securing predictable revenue through the monetization of compliant insurance receivables. This liability-light FinTech distribution model immediately scales their footprint and alleviates the capital expenditures and operational friction common to traditional operators. Driven by Q1 2026 growth—including a 10.7% boost in cash reserves and a 14.7% EBITDA increase—Novus utilizes insurance-backed shared revenue to address the 2026 debt wall at zero capital cost to MSOs. The Dual-Benefit Framework: Priority Hierarchy Novus has developed a scalable consumer model designed for easy market adoption, unlike legacy alternative health programs that struggle with regulatory compliance: Core Service Value: This regulatory-compliant prescription drug and supplemental health plan streamlines routine medical management via high-utility digital pharmacy networks.  Exclusive Territory Monetization: Novus provides partner MSOs with insurance-backed shared revenue models within guaranteed exclusive geographic zones, engineered to optimize income statement performance via recurring policyholder revenue share. Balance Sheet Asset Enhancement: This integration enables MSOs to monetize balance sheet assets via recurring annual cycles, engineered to optimize long-term valuations and bolster Price-to-Book performance. "The evolution of Novus in cannabis-integrated health delivery is engineered through a framework of fiduciary-grade compliance and governance," asserted Frank Labrozzi , CEO of Novus. "By utilizing a compliant, high-utility prescription drug plan as our primary vehicle, we provide our distribution network with a familiar, high-velocity sales gateway. This allows the integrated secondary cannabis and CBD benefits to function as a high-margin incentive, optimizing long-term consumer retention while establishing a formidable competitive moat within the insurance sector." Strategic Integration Matrix: Traditional MSOs vs. Novus Dual-Benefit Gateway TRADITIONAL MSOs (Pain Point) NOVUS CANNABIS MEDPLAN (Strategic Advantage) THE NOVUS SOLUTION (How Novus Assists MSOs) CAPITAL & SCALE CAPITAL & SCALE FOOT TRAFFIC EXCELERATOR Capital Expenditures: Large sums of capital remain tied up in underperforming real estate holdings, warehouse rental agreements, and cultivating equipment that continues to lose value Liability-Light Scale: Novus self-funded its liability-light model, bypassing cultivation and retail sites to lower overhead and burn rates via insurance receivables. Guaranteed Retail Traffic: Directs its loyal policyholder network to partner MSO storefronts, introducing a new revenue stream through reimbursement while generating steady customer traffic without increasing operational costs. DEBT & LIABILITIES DEBT & LIABILITIES REIMBURSEMENT VELOCITY The 2026 MSO Debt Wall: Maturing liabilities, hard to refinance in a high-interest climate, risk substantial stock dilution to resolve obligations, urgently needing fresh revenue to bolster Price-to-Book valuations. Balance Sheet Position: High-margin growth engine characterized by a 14.7% increase in EBITDA and a 10.7% rise in cash reserves during Q1 2026, featuring minimal debt and a negligible burn rate. Seamless Financial Flow: Facilitates efficient, compliant procurement for policyholders and rapid MSO reimbursements and settlements. Medical users generate higher transaction values, converting cash-and-carry customers into a stable, insurance-backed revenue stream. TAXATION & FRICTION TAXATION & FRICTION MARKET OUTLAY REDUCTION Point-of-Sale Consumer Friction: Heavy, localized retail tax layers passed directly onto a fatigued consumer base. Schedule III Catalyst: Federal Schedule III status enables cost reductions via tax-advantaged HSA and FSA-deductible PDP plans. This model further encourages recreational users to adopt health plans featuring integrated cannabis benefits. Zero-Cost Customer Acquisition: Novus lowers MSO acquisition costs through a proprietary agent network and pre-tax, tax-advantaged HSA/FSA plans. This enables MSOs to fully recover point-of-sale discounts via structured reimbursement strategies fully. COMPETITIVE MOAT COMPETITIVE MOAT DATA-DRIVEN RETAIL MOAT Market Saturation: Oversaturated regional markets experience rapid value erosion as ongoing new dispensary licensing drives cannabis prices below sustainable levels for traditional Balance Sheets and Income Statements. The 15,000-Agent Barrier: Novus holds a first-mover advantage through a distribution network generating exclusive data. Other health insurers seek this analytical access by embedding Novus benefit packages into their own products. Cross-Variable Insights: Equips partner MSOs with deep insights into consumer retention, optimizes inventory forecasting and shelf-space management, and enables the acquisition of higher-value point-of-sale customers alongside strategic brand alignment. Converting MSO Liabilities into Ecosystem Assets Legacy MSOs currently navigate a landscape of structural vulnerabilities, including high-interest obligations from the 2026 Debt Wall, punitive taxes, and costly customer acquisition. Novus Cannabis MedPlan provides a FinTech cannabis distribution gateway and operational countermeasures to reverse these fiscal strains. The Strategic Integration Matrix establishes a partnership framework engineered to stabilize and fortify MSO retail performance immediately: Lower Outlays: National benefits matching eliminates costly customer acquisition marketing by leveraging our established distribution channels. Automated Traffic: Partner dispensaries benefit from a consistent stream of high-value policyholders, ensuring regular repeat visits and higher average order values. Fast Reimbursements: Novus leverages its FinTech infrastructure for rapid, compliant reimbursements to MSOs, increasing their cash flow by converting traditional cash-and-carry operations into structured, recurring revenue. How MSOs Can Partner with the Novus Gateway Multi-State Operators, commercial dispensary networks, and retail compliance stakeholders are invited to hedge against regional market dilution and impending fiscal strain by integrating with the Novus network. Secure exclusive regional placement within the Novus dual-benefit directory, lower your customer acquisition overhead, and accelerate your cash flow today. To explore partnerships or merchant integration, contact Novus Corporate Communications at [email protected] or visit www.getnovusnow.com . About Novus Acquisition & Development Corp. Novus Acquisition & Development Corp. (OTC: NDEV), doing business as Novus Cannabis MedPlan, is a specialized health insurance provider and structured FinTech gateway tailored exclusively for the legal cannabis sector. Operating through its wholly owned California-domiciled insurance carrier, WCIG Insurance Services, Inc., Novus provides nationwide reciprocity for cannabis-based medical solutions, health policies, and supplementary benefits plans. By utilizing an asset-light framework, a national distribution network of licensed agents, and advanced data analytics, Novus bridges the gap between traditional regulated healthcare compliance and the legal cannabis market ecosystem. Further Research Financial Filings:  Click Here Quote: Click Here Investor's Page : Click Here  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.   Corporate Media & Investor Contact: Company: Novus Acquisition & Development Corp. (DBA Novus Cannabis MedPlan) Department: Investor Relations & Public Relations Website: https://getnovusnow.com/investor-relations Phone: 855-228-7355 Emial: Investor Relations: [email protected]  

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