Novus Acquisition & Development Corp. (OTC: NDEV) officially launched its Novus MedPlan in partnership with Proteus420 after months of anticipation from both patients and providers. With the alternative healthcare industry expected to surpass $12 billion in size, according to IBISWorld, the launch represents a key step forward in the complementary and alternative medicine (“CAM”) industry, which includes medical marijuana, alternative medicine, and holistic healing.
The Novus MedPlan represents a revolutionary approach to reducing healthcare costs within the CAM industry. For just $19.95 per month, patients enrolled in the program receive a 20% to 50% discount on doctors’ consultations, alternative medication, and medical marijuana in approved U.S. states. Service providers also benefit by reaching a wider patient population with their goods and services.
Recently, CannabisFN’s Mike Elliott sat down with Proteus420 Co-Owner Dawne Morris to discuss the launch of Novus MedPlan and its future:
Connecting Patients and Providers
The Novus MedPlan portal provides patients with a lot more than simple discounts on their CAM products and services. With a searchable database of products and services across all participating providers, patients can quickly access detailed information about products like specific medical marijuana strains or services like naturopathic consultations to find solutions that best fit their needs.
Built atop the Proteus420 platform, the Novus MedPlan can be seamless integrated with existing medical marijuana dispensary software and other solutions used by the CAM industry as a whole. These companies also gain access to the entire database of enrolled Novus MedPlan patients, which represents a sizable and growing market for providers to sell their products and services.
For example, the company entered into an exclusive provider agreement with Nana’s Secret of Washington State during the middle of last year. Under the agreement, Novus MedPlan patients receive an exclusive 30% discount on the firm’s full product line, which includes cannabis-infused soft drinks. The deal represents a win-win for both Nana’s Secret (increased sales) and enrollees in the plan (savings).
In many ways, the approach combines the business model of consumer-focused startups like WeedMaps.com and Leafly.com with dispensary-level software solutions provided by companies like American Green Inc. (OTC Pink: ERBB) or MedBox Inc. (OTC Pink: MDBX). These dynamics make it a compelling play on both the consumer and provider end of the spectrum.
Constantly Expanding into New States
Novus Acquisition & Development has already established a presence in Vermont, Arizona, Colorado, Michigan, Alaska, and Hawaii, with plans to expand into Nevada and potentially other highly populated states. Alongside its expansion into new states, the company has signed a number of agreements with leading medical marijuana dispensaries and partners that should help drive patient enrollment.
In order to further grow this footprint, management signed an insurance sales agency contract with Senior Healthcare Benefits Group (“SHBG”) in February. The company will market Novus MedPlan to a target market of over 80,000 registered medical marijuana patients in Arizona in exchange for a commission. Additionally, SHBG has applied to market to more than 600,000 patients in California.
Management also engaged PR Revolution late last year to act as its public relations and marketing agency of record. With their help, the company surpassed its early expectations for pre-enrollment in the Novus MedPlan program and has attracted interest from several dispensaries and other providers across several states. These dynamics set the stage for near-term expansion into more states, like Nevada and California.
Building Shareholder Value
Novus Acquisition & Development has spent the past several quarters building the Novus MedPlan by pre-enrolling patients and signing partnerships with dispensaries. With the official launch of the program, the company is taking a large step toward generating sizable revenue and recurring income that should drop down to the bottom-line and build long-term value for shareholders.
The program’s success is driven by the ongoing legalization of medical marijuana across the U.S., increasing number of studies showing the efficacy of cannabinoids in treating a number of medical conditions, and the growing need for discounts to cope with the high costs of medical marijuana. By lowering costs and improving access, the program fills a key void in the market that could attract mass adoption.
Finally, the company’s management team has been working hard to unlock shareholder value in financial ways. CEO Frank Labrozzi returned 90 million of his personal shares to the treasury, which significantly reduced the potential for dilution of the stock. Management also plans to pursue an up-listing to a higher exchange over the coming quarters to increase liquidity and transparency.
While many investors are focused on medical marijuana companies, like GW Pharmaceuticals plc (NASDAQ: GWPH), or related products, like mCig Inc. (OTC Pink: MCIG), Novus Acquisition & Development may be worth a closer look given its recent launch of Novus MedPlan and the high-margin business model that the web portal yields as management grows the network over time. To learn more about the Novus MedPlan visit www.novusmedicalgroup.com
Sign up to follow Novus Acquisition and Development Corp (NDEV) here http://www.cannabisfn.com/mdc/novus-acquisition-development-corp/
Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.