Mr. Philip Campbell reports

HERBAL DISPATCH ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS WITH CONTINUED STRONG REVENUE GROWTH

Herbal Dispatch Inc. has released its financial results for the third quarter ended Sept. 30, 2023. The company continued to make strong progress toward its strategic growth initiatives in the third quarter of 2023, achieving gross sales of $1.5-million, which represented growth of 45 per cent from Q2 2023 domestic gross sales of $1.0-million.

Since commencing sales in Canada on the acquired marketplace herbaldispatch.com in the fall of 2022, Herbal Dispatch has achieved significant quarter-over-quarter revenue growth as it continues to grow its customer base and achieve repeat orders. Since the start of 2023, the company's direct delivery retailer platform has increased from 38 to over 200 customers and it now has over 2,000 active customers on its medical sales platforms. In addition, in Q3 2023, the company expanded its recreational cannabis sales to include the Liquor Distribution Branch of the government of British Columbia, significantly expanding its revenue base for recreational cannabis product.

On the export front, following its first export sale in June, 2023, the company completed its second export sale to Australia in November, 2023, consisting of 130 kilograms of premium dried cannabis, generating revenue of $500,000. This export sale will be reported in revenue in Q4, which combined with continued sales domestically, should lead to meaningful revenue growth for the company in the quarter ending Dec. 31, 2023.

"With the oversupply and depressed wholesale pricing domestically, export sales present a compelling opportunity for high volume sales with strong margin potential," said Philip Campbell, Herbal Dispatch's president and chief executive officer. "We are currently seeing strong international demand for our premium grade and craft focused cannabis from Canada, which has the potential to drive revenue growth for Herbal Dispatch in fiscal 2024."

The company believes its on-line strategy and capital light, scalable business model is showing signs of success. The company's strategy is to utilize its growing on-line marketplace to identify and purchase best in class cannabis products that can be sold across all of its available product channels: direct to consumer (medical), wholesale to retailers (direct delivery recreational) and bulk sales (domestic and export).

Debt financing

In October, 2023, the company received a short-term loan in the amount of $100,000 from a director of the company to support its working capital needs. The loan bears interest at an annual rate of 14 per cent per annum, payable monthly, and matures on the earlier of (i) Oct. 31, 2024; and (ii) within 30 days of a redemption notice being issued to the company by the holder. If needed, the company may obtain additional short-term loan advances on similar terms to support its working capital requirements. However, there can be no assurance that the company will be able to obtain additional financing in the future.

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, herbaldispatch.com, 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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