The cannabis industry is a dynamic and rapidly evolving sector that attracts substantial investment and innovation. Much of the conversation, however, often focuses on “plant-touching” businesses—those directly involved in the cultivation, processing, and sale of cannabis. Examples of such companies include MedMen Enterprises, Curaleaf Holdings, Acreage Holdings, Cresco Labs, Green Thumb Industries, Trulieve Cannabis, Ayr Wellness, TerrAscend, Verano Holdings, and Ascend Wellness. These businesses invest heavily in cultivation facilities, manufacturing plants, and retail dispensaries, making them particularly vulnerable to the various regulations and risks associated with handling the cannabis plant itself.
These “plant-touching” companies, while vital to the industry’s supply chain, face unique challenges. The fragmented legal landscape across states, the complexities of federal illegality, and the intricate web of cultivation and manufacturing regulations mean that their operations are constantly under scrutiny and subject to change. Fluctuations in wholesale prices, supply chain disruptions, and the ever-present threat of regulatory shifts directly impact their bottom line and stock performance. When a state alters its cultivation laws or a new tax is imposed on cannabis products, it’s these companies that bear the immediate brunt of the impact.
MedMen Enterprises faces operational and legal challenges due to its vertically integrated business model, which encompasses both retail and cultivation licenses. Curaleaf Holdings focuses on wholesale adult-use sales and cannabis distribution. Acreage Holdings cultivates cannabis and operates dispensaries, while Cresco Labs runs advanced cultivation and distribution facilities. Green Thumb Industries grows cannabis for consumer products, and Trulieve Cannabis specializes in medical cannabis production and distribution. Ayr Wellness emphasizes cultivation, and TerrAscend operates vertically integrated businesses. Verano Holdings highlights the role of its cultivation team, while Ascend Wellness operates dispensaries and cultivation facilities that produce its own branded products. All these companies are exposed to specific regulatory and operational risks associated with the cannabis industry, and their success depends on navigating this complex environment effectively.
In stark contrast, Novus Cannabis MedPlan operates with a fundamentally different business model, one that strategically positions it outside the direct “plant-touching” sphere. Novus Cannabis MedPlan functions as a national supplemental health insurance carrier, specializing in health plans that integrate cannabis-specific benefits. Their revenue is generated primarily through insurance premiums, and crucially, they do not engage in the cultivation, distribution, or sale of cannabis products. This distinction is paramount.
Instead, Novus Cannabis MedPlan thrives on a collaborative partnership model with licensed dispensaries. Novus provides the essential technology and a vital patient pipeline, acting as a bridge between patients seeking cannabis-related benefits and the dispensaries that offer compliant products. The dispensaries, in turn, are responsible for the critical aspects of compliance oversight and distribution of the cannabis itself. This symbiotic relationship enables Novus to offer a valuable service to both consumers and dispensaries, while remaining insulated from the direct operational challenges and regulatory fluctuations that affect “plant-touching” companies.
By not touching the plant, Novus Cannabis MedPlan circumvents many of the primary risks and capital expenditures associated with the cannabis industry. They are not concerned with crop yields, pest control, or the ever-changing regulations around cultivation and processing. Their focus remains on the technology platform, patient acquisition, and the robust insurance framework that facilitates access to cannabis as part of a comprehensive wellness plan. This strategic positioning allows Novus Cannabis MedPlan to operate with greater agility and stability, offering a unique and less volatile investment opportunity within the broader cannabis ecosystem. As the industry continues to mature and regulatory landscapes evolve, Novus’s non-plant-touching model offers a compelling case for resilience and sustained growth.
