WTRH Stock: Waitr Holdings Flies On Cannabis Partnership

Waitr Holdings Inc (NASDAQ: WTRH) is headed for the top in the market this morning, and for good reason. The company announced that it has entered into a new partnership that will streamline its services, including the end user experience. Here’s what’s going on:

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Waitr Holdings Announces Partnership

In the press release, Waitr Holdings said that it has agreed to pursue a partnership with Flow Payments. The goal of the two is to create a compliant marketplace, delivery and payment solution for cannabis dispensaries. 

In the release, WTRH said that its proprietary delivery technology and assets will be used to set up the delivery infrastructure within the partnership. On the other side, Flow Payments’ unique access to specific partnerships and corresponding payment processing solutions will be used on the payment and customer acquisition side of the coin. 

WTRH went on to explain that the two parties will work together to create a specialized platform to facilitate the sale and delivery of cannabis. Moreover, the two intend to do so by abiding by all federal and state directives. 

Management Commentary

In a statement, Carl Grimstad, CEO and Chairman at Waitr Holdings, had the following to offer:

This opportunity with Flow Payments is just another way we are pivoting the company into new verticals with specialized integrated payment and delivery solutions. 

As the regulatory framework around the cannabis industry within the United States continues to evolve, we see this as a natural step in our own evolution and ability to continue bringing value to our shareholders.

The above statement was followed up by Brett Husak, Managing Partner at Flow Payments. Here’s what he had to offer:

We are very excited to partner with Waitr and look forward to helping them navigate the complexities of payment processing. Building a statutorily compliant delivery and payment solution in the cannabis space is the primary goal of a joint venture and we strongly believe it will create immense value for any dispensary looking to increase their revenue, while operating within the applicable guidelines.

Risks to Consider Before Buying WTRH Stock

Before jumping into WTRH stock, it’s important to consider the risk. After all, any investment you make will come with the risk of loss. When it comes to Waitr Holdings, the most significant risks include:

  • Speculation. First and foremost, this big climb is all about cannabis. At the moment, cannabis isn’t legal on a federal level in the United States. However, the company mentioned that it will abide by all federal and state laws. As such, this platform won’t be able to go live until the United States federal government legalizes cannabis. Making a bet on the government doing anything, especially in a timely fashion, is a speculative bet. 
  • Pennies. WTRH is a penny stock. As a penny stock, it experiences high levels of volatility, making it difficult to time entrance and exit decisions. 

Final Thoughts

Sure, there are risks to consider here, but there’s also plenty to be excited about. Waitr Holdings’ core business is doing well. Sure, it’s a penny stock, but it’s a profitable one. 

Moreover, the move into the delivery of cannabis is an interesting one that could be overwhelmingly fruitful. There’s a strong argument that cannabis will become legal in the United States relatively soon. Should this take place, the company will likely already have everything in place to launch its delivery service, quickly becoming a leader in the space. 

All told, this is a bold move, but it may prove to be overwhelmingly lucrative, making WTRH stock one to watch closely. 

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