Novus Acquisition and Development Corp. (OTCMKTS:NDEV) Continues To Expand Market Share Following Impressive 3Q2016

November 30, 2016 - By Ruchi Gupta

Novus Acquisition and Development Corp. (OTCMKTS:NDEV) has been fluctuating in the stock market, for the last 1-week, following the filing of its 3Q2016 financial report. Although the company reported a 35% increase in revenue and a 54% increase in net profit, on a quarter-over-quarter basis, investor opinion about the stock remains to be mixed. On November 29, 2016, NDEV spiked to $0.288 per share, but reversed its gains soon after, However, the stock was still able to record a gain of 2.18%, by the end of the session, to close at $0.267 per share.

For its 3Q2016, the company reported that it has successfully increased its cash balance, to $60,000 and expanded its coverage to the entire states of California and Arizona. The recent expansion means that Novus has access to 57% of the entire cannabis market, in the US. Moreover, NDEV introduced its worker compensation package, aimed at capturing the market share in the recreational marijuana space. Novus also noted that banks in the US were becoming less reluctant to take deposits on companies, which handle the cannabis plant. However, the 100% improvement in cash flow is a result of the company implementing its in-house marketing program.

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Providing details of its new workers compensation package, the company revealed that it allows them to deliver cannabis related products to injured workers. Although the program is only available for consumers in California, it still offers a portion of the recreational cannabis market, to Novus. Commenting on its in-house marketing efforts, the company point out that large advertising giants continue to refuse help to marijuana related companies, since the products are still illegal in a number of states. Moreover, previous efforts to acquire the services of third-party marketers, has given very little return on investment and there has been a lack of performance from the parties.

Chief Executive Officer Frank Labrozzi, stated, “It has taken a year to build the insurance regulatory and technological infrastructure to operate as a medical marijuana health plan. Since we entered into this space, we have had difficulties in getting our branding out through traditional advertising segments. However, we now have approvals to allow our marketing and advertising to be disseminated through digital ad exchanges, unabated. Therefore, we can launch aggressive marketing campaigns. Despite the impediments that are inherent to the cannabis space, we are still achieving our goals.”

Novus provides insurance solutions, within the medical marijuana and wellness market. At the moment, this market is limited to only some states, but ensures that Novus does not need to touch the plant at all. Medical marijuana is an industry that is still progressing at a slow pace, as such the company should experience little growth, in the short-term. However, as more states start to legalize medical marijuana and cannabis based treatments become more widely accepted in the medical community, Novus can expect exponential growth, in the long-run.

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