Mr. Philip Campbell reports

HERBAL DISPATCH PROVIDES YEAR END SALES UPDATE AND ANNOUNCES SHARE CONSOLIDATION

Herbal Dispatch Inc. has provided a year-end sales update and intends to consolidate the common shares issued in the capital of the company on the basis of 10 preconsolidated common shares for one postconsolidated common share in order to improve the company's capital structure.

Year-end sales update

Herbal Dispatch expects to report gross sales of approximately $2.5-million for the fourth quarter ended Dec. 31, 2023, reflecting a 67-per-cent increase from gross sales of $1.5-million reported in Q3 2023. For the 2023 fiscal year, the company expects to report gross revenue of approximately $5.7-million, an increase of $5.3-million from gross revenue of $400,000 reported in fiscal 2022.

With the revenue growth achieved, Herbal Dispatch also expects to report positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for Q4 2023.

Herbal Dispatch is continuing to experience solid revenue growth, both domestically and from growing demand for its products internationally. The company has worked hard 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. The company expects that these relationships will continue to grow in 2024.

Philip Campbell, chief executive officer, commented: "We are pleased to report a very strong Q4 sales result on the back of growth in our three key sales pillars of medical, wholesale and export. From a standing start in January, 2023, we are now seeing the benefits of our asset-light, customer-focused strategy and we are optimistic for continued growth in 2024. Our share consolidation will also allow us to rebuild our investor base."

Share consolidation

The consolidation has been approved by the company's board of directors in accordance with the articles of the company. The company will not issue any fractional common shares as a result of the consolidation, instead all fractional common shares equal to or greater than one-half resulting from the consolidation will be rounded to the next whole number; otherwise, the fractional common share will be cancelled.

The common shares are expected to begin trading on a consolidated basis and under the new Cusip No. 42704B205 on Feb. 22, 2024, having a record date of Feb. 23, 2024, subject to regulatory approvals, including the approval of the Canadian Securities Exchange (the CSE). Herbal Dispatch will not be changing its name or trading symbol in connection with the consolidation.

As a result of the consolidation, the issued and outstanding common shares of Herbal Dispatch will be reduced to approximately 73,627,909 common shares.

Shareholders who hold their shares through a securities broker or dealer, bank, or trust company will not be required to take any measures with respect to the consolidation. Herbal Dispatch's transfer agent, Odyssey Trust Company, will mail a letter of transmittal to all registered shareholders of Herbal Dispatch that will contain instructions for exchanging their preconsolidated common shares for postconsolidated common shares. Registered shareholders will be required to return their certificates representing preconsolidated common shares and a completed letter of transmittal to Odyssey. Any registered shareholder who submits a duly completed letter of transmittal to Odyssey along with the share certificate representing the preconsolidated common shares, will receive in return a newly issued share certificate or a direct registration system representing the postconsolidated common shares.

Herbal Dispatch's outstanding warrants, options and other convertible securities will be adjusted on the same basis as the consolidation with respect to the underlying common shares exercisable pursuant to the warrants, options and other convertible securities, with proportionate adjustments being made to applicable exercise or conversion prices, as applicable.

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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