Waitr’s $90 million deal with cannabis dispensary software company goes up in smoke – The Advocate

Waitr will no longer acquire a software firm that specializes in serving cannabis dispensary retailers, but said it will continue to pursue a “potential business relationship” with the company.

The Lafayette-based delivery app’s parent company, Waitr Holdings Inc., announced in December that it had signed a non-binding letter of intent to buy Retail Innovation Labs Inc., which does business as Cova. Under the terms of the deal, Waitr would purchase Cova for $90 million in cash and stock. Cova specializes in software that streamlines the management and compliance process for marijuana dispensaries. Nearly 2,100 dispensaries use Cova software for sale, inventory and compliance purposes.

At the time the deal was announced, Carl Grimstad, Waitr CEO and board chair said the total value of cannabis transactions processed on Cova were estimated to be $2.3 billion.

But in a Securities and Exchange Commission filing Thursday, Waitr said both sides had “mutually agreed” to spike the acquisition. The filing did not give a reason for the deal’s collapse.

Waitr said it will look for ways to provide Cova customers with “access to third parties that provide payment processing solutions.”

“(Waitr) believes that such an arrangement can be mutually beneficial and will allow both parties to continue to execute

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