Proprietary InsurTech model designed to capture $100B+ HSA/FSA market liquidity
Miami, FL — October 13, 2026 — Novus Acquisition & Development Corp. (OTC: NDEV), operating as Novus Cannabis MedPlan through its California carrier WCIG Insurance Services, Inc., released a comprehensive update for shareholders and institutional stakeholders. While federal administrative procedures continue to lag, this timing does not derail or reverse the broader trajectory of medical cannabis rescheduling initiatives—NDEV’s proprietary, non-plant-touching InsurTech model secures our financial growth. By bridging conventional prescription benefits with supplemental cannabis plans, Novus effortlessly taps into multi-billion-dollar liquidity channels, empowering us to scale rapidly ahead of federal regulations.
Financial Performance & Capital Structure
Backed by ten years of targeted technology investments, NDEV has achieved 13 consecutive quarters of uninterrupted top-line expansion. The business operates under a defensive, institutional-grade balance sheet with key highlights including:
Sustained EBITDA Growth: Multi-year EBITDA growth exceeding +50.4% (reaching an annualized rate of 58%) and sequential quarter-over-quarter expansion of +6.5%, with underlying average margins of 47.2%.
Asset Base & Capital Deployment: Asset growth includes a 28.2% increase in cash reserves, a 32.7% increase in proprietary software assets, and a 21.8% increase in insurance contract assets. Management is strategically reinvesting this liquidity to fuel NDEV’s national expansion.
Capital Protection: Maintained a conservative 8.8% debt-to-equity posture and safeguarded core asset holdings to protect company capital.
Shareholder Protection: Zero convertible debt instruments to prevent dilution and zero insider share liquidations over the past 36 months.
The Dual-Platform Compliance Architecture
NDEV’s institutional value proposition relies on a backend technological infrastructure that strictly isolates data and financial routing into two separate operational environments:
Platform A (Traditional Healthcare & RX): Manages a traditional Prescription Drug Plan processing over 20,000 covered drugs via a centralized digital pharmacy. It ensures seamless banking compliance, adherence to federal regulations, and traditional carrier reciprocity.
Platform B (Cannabis Commerce Network): A segregated server ecosystem managing point-of-sale (POS) integration and cannabis network transactions. NDEV secures preferential pricing to enable frictionless reimbursement—akin to standardized pharmacy copayments—at in-network dispensaries.
Because Platform A and Platform B never commingle funds on the backend, this strict firewall protects WCIG’s core insurance license. It proactively bypasses the banking restrictions that necessitate the SAFE Banking Act, providing a de-risked harbor for major Wall Street funds and Canadian cross-border financiers who require absolute separation of federally regulated U.S. healthcare assets from state-level cannabis operations.
Tapping into $100B+ in HSA/FSA Liquidity
NDEV’s infrastructure acts as an offensive liquidity engine. By strategically integrating a telehealth wrapper, NDEV’s plans meet the stringent requirements of IRC § 223(c) and the OBBBA, legally classifying the offerings as qualified high-deductible health plan (HDHP)- compatible services. This regulatory alignment effectively unlocks the $100 billion+ capital pool currently sitting in tax-advantaged Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), injecting immediate institutional-grade liquidity into the NDEV ecosystem.
Strategic Distribution Expansion
To rapidly scale this compliant framework, NDEV has finalized strategic distribution alliances with key partners, including PRAM and Compass Health. By integrating its InsurTech capabilities into expansive benefit networks, NDEV opens direct distribution channels through 15,000 licensed representatives, reducing acquisition costs and systematically curbing client attrition.
Management Commentary
“Novus has effectively insulated its financial growth from federal delays,” said Frank Labrozzi, Novus CEO. “Over the past decade, we have established a fully compliant infrastructure that operates successfully independent of policy changes and unaffected by regulatory hurdles in Washington, especially the Safe Banking Act. Regardless of whether reforms pass or medical cannabis rescheduling stalls, Novus remains equipped to maintain a permanent insurance framework within legal states. While our model is independent of these outcomes, if legislation ultimately advances, NDEV is uniquely positioned to scale immediately through our expanding network of distribution partners.”
Federal Rescheduling: A Procedural Pause, Not a Derailment
While recent headlines highlight an administrative stay in the DEA’s cannabis reclassification process, this is strictly a procedural pause, not a derailment of federal progress. As the timeline for Schedule III reclassification extends into 2027, Novus Cannabis MedPlan’s dual-platform infrastructure ensures our financial trajectory remains completely uninterrupted. NDEV continues to execute a fully compliant growth strategy today—insulating our expanding market share from Washington’s bureaucratic timelines while positioning the company to aggressively capitalize the moment federal reclassification is finalized.
For a comprehensive breakdown of our dual-platform InsurTech architecture, live financial updates, and further operational milestones, we invite shareholders and prospective investors to visit getnovusnow.com/investor-relations.
About Novus
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Novus Acquisition & Development Corp. (NDEV) operates as a premier health insurance carrier, seamlessly incorporating cannabis-inclusive coverage into standard health benefit models. Through its wholly owned subsidiary, WCIG Insurance Service, Inc. (CA License: 0K41569, NPN: 17687181), the organization delivers a structured, compliant administrative framework across U.S. medical and adult-use markets.
With the cannabis market transitioning from traditional retail channels to institutional benefits programs, Novus delivers the core financial and analytical architecture essential for the Schedule III paradigm. By focusing on policyholder savings—offering 30% to 45% policyholder discounts alongside point-of-sale tax mitigation—Novus sets the benchmark for managed cannabis solutions, available as individual or group coverage and fully integrable with carrier health plans.
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. (d/b/a Novus Cannabis MedPlan)
Department: Investor Relations & Public Relations
Phone: 855-228-7355
Email:investor@getnovusnow.com