Mr. Philip Campbell reports

HERBAL DISPATCH ANNOUNCES 2023 FIRST QUARTER FINANCIAL RESULTS

Herbal Dispatch Inc. (formerly Luff Enterprises Ltd.) has released its financial results for the first quarter ended March 31, 2023.

The company continued to make significant progress toward its strategic growth initiatives in the first quarter of 2023, achieving gross sales of $400,000, an over 60-per-cent increase from the previous quarter ended Dec. 31, 2022.

The company's monthly run rate revenue has also gone from less than $100,000 in January, 2023, to $300,000 in April, 2023, and an estimated $400,000 in May, 2023. Herbal Dispatch has grown its direct delivery platform from 38 to over 100 customers since the start of 2023 and now has over 1,500 active customers on its medical sales platforms.

"We believe our on-line strategy is addressing many of the customer pain points in the cannabis industry. We have also found a way to deliver a superior customer experience in a highly scalable, yet capital-efficient, manner," said Philip Campbell, Herbal Dispatch's president and chief executive officer. "Our strategy is to utilize our growing on-line marketplace to identify and purchase best in class cannabis products that can be sold across all of our available product channels: direct to consumer (medical), wholesale to retailers (direct delivery recreational) and bulk sales (domestic and export). We are extremely pleased that this strategy is starting to bear fruit with strong monthly sales growth and the export order book is very promising. We now plan to raise a small amount of equity to ensure steady investment in inventory."

The company expects that strong repeat orders and new customer growth will continue to drive strong month-over-month sales growth throughout the remainder of the year. In addition, the company is seeing strong inbound interest in export sales that are expected to convert to revenue starting later in the second quarter.

On May 25, 2023 the company announced that, subject to approval of the Canadian Securities Exchange (CSE), the company intends to complete a non-brokered private placement of approximately 100 million units of the company at a price of one cent per unit for gross proceeds of $1-million. Each unit shall consist of one common share and one common share warrant with each warrant exercisable for one common share at a price of five cents per share for a period of 24 months after the closing date. The private placement shall be completed on a best-efforts basis from eligible purchasers that shall be restricted to accredited investors or other investors meeting exemption requirements for a non-brokered private placement.

Proceeds from the private placement will be used for working capital in support of the company's significant growth. Should the private placement be oversubscribed, the company reserves the right to accept additional funds, subject to the approval of the CSE.

The full version of the consolidated interim financial statements and associated management's discussion and analysis for the three months ended March 31, 2023, can be viewed under the company's profile on SEDAR and will also be made available on the company's website.

About Herbal Dispatch Inc.

The company owns and operates leading cannabis e-commerce platforms and is dedicated to providing top quality cannabis to informed consumers at affordable pricing. The company's flagship cannabis marketplace is a trusted source for exclusive access to small-batch craft cannabis flower and a wide array of other product formats. The company's common shares trade on the Canadian Securities Exchange under the symbol HERB.

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