NOVUS ACQ & DEV CO COM USD0.001 (OTCMKTS:NDEV) Has Set The Groundwork For 2017 Growth

NOVUS ACQ & DEV CO COM USD0.001 (OTCMKTS:NDEV) keeps on pricing higher and higher, despite not having really put forward any business updates over the last few weeks. The marijuana industry is hot right now, of course, but the recreational legalization ballots are now in the rear view mirror (at least the ones that are driving near term valuation) and many of the companies that picked up strength on the back of these ballots are giving back value to the market.Novus is an exception to the rule.The company is up 325% on its November 9 price, and having brought in what amounts to record volume this week, looks like it's not going to slow down. The question is, how far can it run? The answer is rooted in the operational growth potential, and it looks like there's plenty of that – on paper. Execution is key with this one.By way of a brief introduction to the company, Novus provides medical plans and related programs for hemp and cannabis patients in the United States. Put another way, it's an insurance company for the medical marijuana space. It's worth noting that, to date, this has been a really tricky space in which to operate. Each state has its own individual laws surrounding marijuana insurance coverage, even those that are well established medical marijuana advocates, and this requires companies like Novus to offer variable packages from one state border to another.As per an announcement made mid November, however, which came alongside a business update, Novus reportedly has a multi state framework in place. It's cost the company $7 million to get it in place, but the cash hasn’t gone to waste. Across the third quarter, and in line with the release date of the business update (so, mid November) Novus can render risk and non-risk insurance models in Washington, Oregon, Hawaii, Michigan, Arizona, Colorado, California, Washington, and Vermont. That's a solid spread of the accessible states, and gives the company a platform from which to start generating revenues and building its financial position.Something that, again, Novus started to really perform against in the third quarter. On a quarter over quarter basis, revenues increased 35% with a net profit of 54%. Cash balance at and September was $60K – not great, but for a company this size, not terrible. NAV sits at $1.25 million as things stand, and cash flow has improved 100% purely through a decision to shift marketing in house, as opposed to outsourcing.The key point here is that this is a massive unmet need in an industry that is only just getting going, and that is set to expand dramatically over the next decade and beyond. Novus has been working for twelve months to get a framework in place from which it can start to serve this industry, and moving into 2017, it's got that framework set. It's now a case of getting its offerings in front of potential customers, and for us, that's the primary risk right now.It's currently very difficult to advertise in the marijuana space. Just as with the insurance business, regulations differ from state to state, and many of the major outlets (internet, television, radio etc.) won't allow cannabis related companies to advertise through their networks.There are a few options that the company has identified, however, and if Novus can leverage these going forward, and start to expand on its current client base, then there's potential for real growth in sales.We're looking for updates that relate to this marketing strategy heading into early 2017 as near term upside drivers. Marketing first, then client acquisition. Looking at the recent action, however, these sorts of developments might not be needed for market cap inflation.We will be updating our subscribers as soon as we know more. For the latest updates on NDEV, sign up below!Disclosure: We have no position in NDEV and have not been compensated for this article.