Novus Acquisition & Development Corp. (OTC Pink: NDEV) is engaged as an acquisition & development company, which specifically focuses on insurance products. Shares of the insurance company are gaining 10.24%, through afternoon trading on Monday, March 27, 2017. Over the past month, Novus Acquisition & Development Corp. has seen average daily volume of 363,031 shares. However, volume of 356,370 shares or dollar volume of $149,675, has already exchanged hands afternoon Monday.
Shares of Novus Acquisition & Development Corp. are rallying Monday, after the company released full year 2016 earnings, which showed positive momentum heading into the second half of 2016. During the fourth quarter 2016, gross revenues grew 16% to $24,482. Profit margins stood at 35%; net asset value grew 9% to $1.4 million. Here is the full press release detailing of the second half 2016 earnings and momentum:
Novus Acquisition & Development Corp.
MIAMI, FL / ACCESSWIRE / March 27, 2017 / Novus Acquisition & 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 the three and twelve month period ended December 31, 2016. Additionally, the Company is pleased to provide an update to the milestones it has achieved over the past few months as it has strengthened its infrastructure and positioning for future growth.
Key Milestones Achieved in Q4 2016:
- Gross revenues increased 16% sequentially to $24,482
- Operating and Net income growth of 35% to $16,285 for a 35% profit margin
- Net Asset Value increased 9% to $1.4 million
- Improved in-house marketing efforts, reaching 1,000,000 impressions per month with an average of 0.7% engagement
Novus is the first of its kind to enter into the legal medical cannabis space as an insurance entity and continues to blaze the trail with its unique business model. With a low fixed overhead, Novus is pleased to demonstrate positive trends in many facets of its efforts in creating an insurance market in the legal medical cannabis and other niche insurance segments.
Quarterly Revenue increased by 16% sequentially to $24,482 for the three months ended December 31, 2016, from the third quarter of 2016. This increase was primarily due to the improvement in key performance indicators (KPI) in the Company’s in-house marketing efforts. In 2016, Novus KPI increased from 10,000 unique impressions per month in August to over 1,000,000 impressions per month with a 0.7% engagement rate by year-end. This positive trend has continued to transcend higher in the first quarter of 2017. Novus implementation of its marketing strategy mix will continue to increase, despite the fact that traditional marketing for insurance products are much different than marketing in the legal medical cannabis market.
Operating and Net income growth of 35% to $16,286 for a 35% profit margin for the three months ended December 31, 2016.
The Company’s Balance Sheet remained strong with the cash balance of $53,984 and the Net Asset Value (NAV) increasing 9% over the sequential quarter to $1,387,317.
Stock Price and Capital Structure:
While the Company is not required to, and does not normally comment on its stock price, it will be addressed due to the many inbound shareholder inquiries. Many Cannabis Index stocks have increased volatility in price and in volume. Novus is no different, with a lot of positive attention due to the Company’s niche business model, the stock price rose from $0.02 in August 2016 to as high as $1.51 in December 2016. Of note, 200+ publicly traded cannabis stocks (see SeekingAlpha contributor: http://seekingalpha.com/author/anthony-cataldo) had been highlighted prior to, through and after the November 8 ballot initiatives. This entire group of stocks all increased in visibility and awareness and all saw a dramatic increase in stock prices and liquidity. Novus, while declining from its highs, is still considerably higher on increased volume from pre-November elections time period. The Company believes its strategy and positioning in offering a revolutionary supplemental risk and non-risk medical insurance plans has been well received by investors.
Conventional valuation analyses can demonstrate how investors might want to review how an insurance company is valued. By focusing on a company’s balance sheet “equity” divided by the amount of “shares issued” an approximate valuation can be determined at an approximate multiple of “20 times” for emerging growth companies.
The Company did not raise any capital in 2016. All sorts of institutional convertible notes with variable toxic pricing structures approached the Company. Novus did not take and will not consider any such capital as to protect its shareholder equity.
In 2016, Company insiders and affiliates have not liquidated any of its holdings nor have taken any cash salary compensation for the preservation of the shareholder value. Common Shares Issued and Outstanding: direct from Company filings at OTC Markets https://www.otcmarkets.com/stock/NDEV/filings.
As of December 31, 2016: 92,453,624 of common shares issued and outstanding.
As of December 31, 2015: 88,953,624 of common shares issued and outstanding.
*The increase in shares issued and outstanding is from stock-based compensation to CEO Frank Labrozzi and investor relations firm Hayden IR. Both issuances are in lieu of any cash compensation.
Closing From The CEO
2016 was successful with the establishment of the Company’s infrastructure platform, creating a solid fundamental base for us to build upon. We also initiated our marketing rollout and brand objective plans, with our continued low overhead strategy, and we are seeing positive trends. Our financial position and operating business metrics improved throughout 2016 and we look forward to continuing to build upon this effort in 2017.
The following are key objectives for 2017 to achieve success for Novus and its shareholders:
- Increase our efforts in our marketing mix and increase our brand influence
- Execute partnerships with well-known brands to increase visibility and awareness and attract patient members
- Expand our compliance to expand into additional states
- Move into Canadian provinces
- Build our Balance Sheet with more patient member signups
- As our burn rate has decreased we are now in a position to start acquisitions within the insurance industry to build our net asset value
We invite you to review the entire filing here: https://www.otcmarkets.com/stock/NDEV/filings.
About Novus Acquisition & Development Corp.:
Novus Acquisition & Development Corp. (OTC PINK: NDEV), through its subsidiary WCIG Insurance, provides health insurance and related insurance solutions within the wellness and medical marijuana industries in states where legal programs exist. Novus has developed its infrastructure within many lines of the insurance business such as, health, property & casualty, life, accident and fixed annuities.
Novus medical cannabis benefits package will work as outside developers and will not cultivate, handle, transport grow, extract, dispense, put up for sale, put on the market, vend, deliver, supply, circulate, or trade cannabis or any substances that violate the United States law or the Controlled Substances Act, nor does it intend to do so in the future and will continue to follow state and federal laws. The statements made about specific products have not been evaluated by the United States Food and Drug Administration (FDA) and are not intended to diagnose, treat, cure or prevent disease. All information provided on these press releases or any information contained on or in any product label or packaging is for informational purposes only and is not intended as a substitute for advice from your physician or other health care professional. Once a push notification is competed the transaction is solely between the state-licensed dispensary and the registered patient.
The state laws are in conflict with the federal Controlled Substances Act. The current administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state designated laws, allowing the use and distribution of medical marijuana. However, there is no guarantee that the current administration, nor any future administration, will not change this policy and decide to enforce the federal laws strongly. Any such change in the federal government’s enforcement of current federal laws could cause significant financial changes to Novus Medical Group. While we do not intend to harvest, distribute or sell cannabis or cannabis related products, we may be harmed by a change in enforcement by federal or state governments.
- For more information, please visit: http://www.getnovusnow.com
- For NDEV 2016 Annual Financial Filing: https://www.otcmarkets.com/stock/NDEV/filings
- Learn How Insurance Companies Are Evaluated: http://bit.ly/2ddIYva
This release includes forward-looking statements, which are based on certain assumptions and reflects 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. Novus Medical Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.