Mr. Philip Campbell reports

HERBAL DISPATCH PROVIDES SALES UPDATE AND ANNOUNCES DEBT REFINANCING

Herbal Dispatch Inc. has provided a sales update regarding the company's recent revenue growth. In addition, the company also announces that it has refinanced unsecured convertible debentures in the principal amount of $938,000.

Sales update

Herbal Dispatch is continuing to experience solid revenue growth. Strong repeat orders and new customer growth is driving domestic month-over-month sales growth through the company's medical and wholesale recreational sales channels. In addition, the company is seeing growing demand for its products internationally, which is contributing to the company's revenue growth. The company has worked hard in 2023 at developing export relationships, and this is starting to bear fruit with repeat orders completed to Australia, initial orders completed to Portugal and additional countries in progress. It is hoped that these relationships will continue to grow as the company enters 2024.

The company recorded gross sales for October and November of approximately $1.7-million. The company reported gross sales of $1.5-million in the third quarter ended Sept. 30, 2023.

Debt refinancing

The company announces that it has issued an unsecured convertible debenture in the principal amount of $500,000 to a director of the company. The debenture bears interest at an annual rate of 14 per cent per annum, payable monthly, and matures on Jan. 31, 2025. Subject to the approval of the Canadian Securities Exchange (CSE), the debenture will also be convertible, at the holder's option, into common shares of the company at a price of five cents per share, and at the company's election, during any period where the trading price of the company's common shares is 10 cents or greater for a period of 20 consecutive trading days. Proceeds from the debenture were utilized to repay existing convertible debentures in the principal amount of $500,000 that were owing to unrelated third parties.

In conjunction with the above, the company also amended the terms of a convertible debenture in the principal amount of $438,000 owing to another director of the company. The amended debenture bears interest at an annual rate of 14 per cent per annum, payable monthly, and matures on Jan. 31, 2025. Subject to the approval of the CSE, this debenture will also be convertible, at the holder's option, into common shares of the company at a price of five cents per share, and, at the company's election, during any period where the trading price of the company's common shares is 10 cents or greater for a period of 20 consecutive trading days.

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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