How Novus Integrated Cannabis In Employer-Sponsored Health Plans

Benefiting From Legislation, Technology, High Taxation Which Drives Consumer Demand

MIAMI, FL – Lexis – September 20, 2022, – Novus Acquisition and Development, Corp. (OTC Markets: (NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc. Operates as a hybrid health insurance carrier and, the nation’s first health carrier offering cannabis that is included in health plans for recreational and medicinal users. Today demonstrates how the regulatory landscape changes, high taxes, and technology will supply cannabis health benefits for the American Workforce.

An estimated 12% of Americans consume cannabis and investors need to be well informed about the regulatory and technological changes that are poignant to their investment.  These changes are favoring Novus’ first-mover advantage and how it strengthens new relationships with mid-tier and major Health Carriers including Big Pharma.

For six years Novus’ first-mover advantage has built a network of cannabis verticals that perform as our Provider Network.  Our foundation in health insurance has allowed us to adjust and adopt changes in the cannabis marketplace. For instance, alliances with health carriers and brokerage wholesalers that white label our plans in Group Sales and our social conscience in helping with Opioid Epidemic and Veterans’ medicinal necessities.

Significant Legislation Changes

• Compassionate Care Act: Where employees are protected from termination for using medical cannabis, this has led the way for Employer-Sponsored Health Plans that include cannabis.

• Human Resources and Complexities of the Workforce: HR policies regarding cannabis will be the newest metric that companies use to recruit and maintain quality employees.

• Opioid Settlement Framework: Adjudicated settlement with Major Carriers and Big Pharma in $45 billion compensatory damages, rehabilitation, and opioid diversion programs. Novus Cannabis MedPlans can put them compliant with State Attorney Generals.

• The Veterans Cannabis Use for Safe Healing Act: Prohibits the Department of Veterans Affairs (VA) from denying VA benefits due to participation in a state-approved cannabis program(s). Allows the VA to prescribe medical cannabis to veterans and create a safe harbor for financial institutions and other businesses.

• Push Against Vertical Integration: State governments are looking towards proposing licensing restrictions so businesses can’t vertically integrate to produce, transport, and sell their own products. This will open up more opportunities to expand our Provider Network.

• Emergence of Third-Party Online Ordering: As smaller operations look toward online retail with online platforms it offers an advantage to be more reactive to industry trends and maintain an inventory that consists of popular and varietal product segments for our policyholders.

• Barrier of Entry In the Weed Market: From government regulations to technological advancements, small and slow, and now antiquated licensing fundamentals many businesses find themselves facing more competition and growing expenses.

• Inflation: Now comes inflation that causes even more of an impediment to consumers who become policyholders that see our benefits packages to cut household budgets.

Taxation

• Rising Recreational Cannabis Taxation: Especially in California, taxation is as high as 37% prompting recreational users in getting their state cannabis cards and joining our health plan to get the medicinal tax rate which is 50% less. Beginning January 1, 2023, cannabis retailers will be responsible for collecting and paying the cannabis excise tax (15% of gross sales) to the California Department of Tax and Fee Administration (CDTFA). We are confident this will help grow our Provider Network of dispensaries and policyholders.

• Future Tax on Weight-based. Similar to cigarette taxes, except instead of taxing per pack of cigarettes the tax is based on the weight of the marijuana product.

• Future Tax on Potency-based. Similar to alcohol taxes, except instead of taxing drinks with a higher percentage of alcohol at higher rates (i.e., liquor is taxed at a higher rate than beer), the tax is based on the THC level of the marijuana product.

InsurTech Technology

• Ecosystem of InsurTech Platforms: These platforms are a disruptive and innovative technology that sells direct to close to 110 million American workers who have Employer-Sponsored Health Plans. These platforms sell D2C health policies on an ala carte basis as opposed to one-size-fits-all health plans. In addition, gives autonomy to the policyholder.

• Embedded Insurance: As funding for these technologies dries up, many are looking towards Novus’ Embedded Insurance as a revenue share with speed to market with our white label solution. This increases our EBITDA by close to 20% by reducing the outlay of agent commissions.

Conclusion

Legislation and Taxation will most definitely drive up the price of cannabis and the consumer will have to absorb these increases. Novus’s business model is aiding in making cannabis more affordable through Employer-Sponsored Health Plans which the American Workforce is demanding to have cannabis as part of their benefits.

There are four characteristics in the aforementioned that has given success to the scope of our business model dramatically, in the areas of:

• Regulatory changes allow cannabis to be a part of mainstream health insurance. Where there wasn’t acceptance by health carriers a year ago, we see total acceptance now.
• Our receivable-based business model creates limited overhead, and once the policyholder is procured, they continuously contribute directly to the company’s Net Asset Value.
• Novus does not excessively issue stock, and always uses our mandatory leak-out provision to third-party vendors so there is no considerable quantity of shares coming into the market from shareholders who did not pay for their stock.
• Health insurance carriers rely on two key indicators to measure value and performance. This is called the Benefit Monetization Ratio. Defined as a total number of policies, monetized annually as an Asset, then, is offset by the operating cost ratio then computed to the Balance Sheet as Net Asset Value. See how insurance companies are valued: Click Here

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About Novus

Novus Acquisition & Development Corp. (NDEV), through its subsidiary WCIG Insurance, Services, Inc. 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, life, and fixed annuities. As a carrier Novus relies on two key indicators to measure value and performance. The Benefit Monetization Ratio is defined as a total number of policies, monetized annually, which is offset by the operating cost ratio which is a Balance Sheet line item computed as Net Asset Value.

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. All cannabis transaction is solely between the state-licensed dispensary and the registered patient.

The state laws 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. Changes in consolidation may affect the provider network. 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. 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.

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. 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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