Novus Capitalizes on Cannabis Rescheduling, Releases Q1 2026 Growth

10 Years of Future-Proofing Its Business Model for This Exact Moment

MIAMI, FL - May 12, 2026 (NEWMEDIAWIRE) - Novus Acquisition & Development Corp. d/b/a Novus Cannabis MedPlan (OTC: NDEV), a pioneer operating as a Specialized Cannabis and Traditional Health Insurance Carrier, today announced its Q1 2026 financial highlights during a landmark era for the industry.

Novus is currently demonstrating fiscal stability and operational efficiency as the federal shift to Schedule III starts to mitigate the 280E tax impact. The company maintains its market leadership through WCIG Insurance Service, Inc., its wholly owned subsidiary, by effectively incorporating medicinal cannabis coverage into a conventional insurance plan framework. This strategy employs a reimbursement strategy to integrate cannabis-related perks into the broader medical ecosystem, while simultaneously creating a new revenue channel for cannabis industry verticals.

Operational & Infrastructure Readiness:

• Infrastructure Longevity: Since 2015, Novus has operated a durable nationwide health carrier framework and has built an expansive national network within the cannabis industry. Its multifaceted portfolio of insurance benefit plans - ranging from supplemental and discount to guaranteed coverage - is expertly structured to integrate with a variety of external health insurance carriers and wholesalers.
• Distribution Power: Driven by a favorable shift in the regulatory landscape, many industry professionals are re-entering the insurance market, expanding the Novus multi-channel ecosystem to over 5,000 agents and brokerage firms. This expansion gives us immediate access to more than 15,000 individual agents and a cumulative reach of millions of prospective policyholders across the group, individual, and Medicare sectors.

Q1 2026 Financial Foundation Highlights:

Review All Past Financial Filings: Click Here

Novus is transitioning cannabis from the 'retail shelf' to the 'benefits ledger.' By owning insurance receivables rather than depreciating assets, NDEV offers a high-margin, non-cyclical entry point into the new era of alternative medicine.

• Earnings Summary: EBITDA saw a 14.7% rise, notably exceeding the 9.8% uptick in Total Revenues when measured against the first quarter of 2025.
• Increased Liquidity: With 10.7% growth in Cash and Cash Equivalents, the firm has the necessary capital to spearhead the market following the rescheduling, relative to Q1 2025.
• Clean Capital: The company maintains a simple debt-to-equity structure with no outstanding convertible notes.

Key Financial and Structural Highlights Indicators:

While the broader industry scrambles to adjust to the Schedule III transition, Novus has spent a decade future-proofing its model for this exact moment.

• Ready Since 2015: To prepare for a 2026 market estimated at $47 billion, Novus spent a decade developing its national network of dispensaries and establishing a robust infrastructure for Specialized and Traditional Health Insurance.
• The "Non-Touch" Advantage: Because Novus does not cultivate, process, or sell the plant directly, its operations are not contingent on federal legislative delays.
• Significant Reach and Distribution: Novus leverages InsureTech partnerships and Tier-1 carrier alliances to gain immediate entry to a network of more than 15,000 brokers and agents. This infrastructure provides a direct connection to millions of potential policyholders currently managed within their professional portfolios.
• Tax Arbitrage Ready: Our proprietary Rx platform already facilitates a 15% to 17% reduction in effective tax burden for medicinal users, positioning NDEV as the premier benefits provider in a post-rescheduling landscape.

Key Financial and Structural Highlights Indicators:

Review All Past Financial Filings: Click Here

CEO Statement: "With the move to Schedule III, the 'Affordability Gap' in cannabis medicine is narrowing, and Novus is the bridge," said Frank Labrozzi, CEO. "We have spent a decade building the infrastructure that the market is only now realizing it needs".

"Deep Value" Calculation for Analysts

For institutional analysts, Novus utilizes a proprietary Embedded Value (EV) to highlight intrinsic worth not currently recognized by standard retail metrics:

EV = (Net Assets) + (Present Value of Future Profits) 

By applying a 20x multiple to the calculated Net Asset Value (NAV) per share, management highlights the company's unique position at the intersection of InsureTech and the legal cannabis industry.

Why NDEV is the "Infrastructure Play" for 2026:

• Tax Neutralization: Novus is well-positioned to help policyholders save as the transition to Schedule III eases 280E tax pressure. Our current point-of-sale integration reduces the effective tax rate for medicinal transactions by 15% to 17%, and we have successfully secured additional discounts at the point of sale. Utilizing a unique reimbursement methodology, delivering savings of 30% to 40% for our policyholders. This reimbursement approach simultaneously creates a new revenue channel that enables cannabis industry verticals to recover the point-of-sale discounts they offer.
• Scalable Overhead Efficiency: By owning receivables (insurance policies) rather than depreciating hard assets (grow lights, warehouses), our EV remains among the highest in the sector.
• Barrier of Entry Framework: The Novus carrier model generates substantial cost reductions for participating patients, fostering a self-sufficient ecosystem. By focusing on institutional integration rather than merely creating market share, Novus provides the vital, proprietary infrastructure that serves as a significant barrier to entry for smaller competitors. Recognizing that major insurance carriers often prefer to acquire existing market share, Novus remains the primary infrastructure ready for such institutional alignment.

New Revenue Stream

•  Strategic Positioning: As the Medicare & Research Pilot Gateway, Novus is exceptionally prepared to support upcoming federal research projects and Medicare pilot programs. Unlike competitors confined by a "single-brand orientation," our distribution model centralizes data from a vast array of dispensaries and brands.
•  The Data Advantage: By maintaining a diverse multi-brand network, Novus provides the federal government with the extensive, cross-variable analytics required for sustainable integration into the national healthcare system.
•  Analytic Neutrality: In its capacity as a health carrier, Novus functions as an impartial aggregator of third-party data - a vital prerequisite for evidence-based policymaking and federal research initiatives.

In Summary

The cannabis sector is undergoing a fundamental shift, transitioning from a localized retail industry into a vital component of the comprehensive healthcare framework. By early 2026, market expansion exceeded forecasts, with over 6 million Americans - about 2.7% of the adult population - enrolled as medicinal cannabis patients. As impending federal tax increases encourage recreational consumers to pursue health insurance that includes cannabis benefits, this patient base is projected to reach approximately 12 million. The Novus business model is strategically positioned to leverage this evolving market environment. 

About Novus

Further Research:

• Review All Past Financial Filings: Click Here
• Quote: Click Here
• Investor's Page: Click Here 

Novus Acquisition & Development Corp. (NDEV) is a premier health insurance carrier focused on integrating cannabis benefits into mainstream healthcare. Through its subsidiary, WCIG Insurance Service, Inc. (WCIG), the company provides a professionalized framework for health plans in legal medical states across the U.S.

As the cannabis industry migrates from the retail shelf to the benefits ledger, Novus stands as the only specialized carrier providing the financial and data infrastructure necessary for the Schedule III era. By prioritizing patient affordability through 30% to 45% policyholder discounts and sophisticated POS tax-mitigation strategies, Novus is defining the future of managed alternative medicine.

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. 

Investor Contact Information
Investor Website
855-228-7355 
Email: [email protected]

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