Mr. Philip Campbell reports

HERBAL DISPATCH UNVEILS STRATEGIC BUSINESS PLAN FOR 2026 TO DRIVE SUSTAINABLE GROWTH AND ENHANCE SHAREHOLDER VALUE

Herbal Dispatch Inc. has unveiled its comprehensive strategic business plan for 2026. This plan builds on the company's robust historical performance, aiming to significantly accelerate revenues while improving gross margins and EBITDA (earnings before interest, taxes, depreciation and amortization).

The plan outlines four key priorities designed to expand market share, foster innovation and deliver long-term value to stakeholders. With a successful $2-million private placement completed in October, 2025, and three consecutive years of triple-digit annual sales growth, the company is well positioned to execute this ambitious strategy.

Key strategic priorities

(1) Enhancing medical cannabis sales to veterans

The company aims to increase sales in this segment by 200 per cent annually, through partnerships with veterans' organizations such as the Royal Canadian Legion and Veterans Affairs Canada, development of veteran-specific product bundles, and targeted marketing campaigns focused on benefits for conditions such as PTSD (posttraumatic stress disorder), pain and anxiety. Key performance indicators (KPIs) include 30-per-cent year-over-year (YoY) growth in veteran customer acquisition and maintaining a retention rate above 89 per cent.

(2) Expanding recreational sales to additional provinces and deepening penetration in British Columbia (BC)

Herbal Dispatch aims to achieve 40-per-cent YoY growth in recreational sales. This will involve securing listings with additional provincial cannabis wholesalers, expanding SKU (stock-keeping unit) counts in existing markets from 44 to over 100 in British Columbia alone (with similar growth targeted in new provinces), and investing in e-commerce platform upgrades featuring AI-driven (artificial intelligence) personalization and recommendations. KPIs include entering new provinces and boosting the British Columbia market share to 15 per cent.

(3) Growing B2B (business-to-business) exports to federally legal countries

The company targets tripling export volumes by 2028. Efforts will focus on strengthening partnerships in existing markets (Australia, Portugal, Germany, Brazil and Czech Republic) and entering new markets including the United Kingdom, Switzerland, Costa Rica and New Zealand, with investments in GMP/EU GMP (good manufacturing practice/European Union good manufacturing practice) compliance and participation in international trade shows. KPIs include 100-per-cent YoY export revenue growth and adding two to three new markets annually.

(4) Increasing investor awareness through IR (investor relations) marketing companies

To enhance liquidity and attract institutional investors, Herbal Dispatch will engage specialized investor relations and marketing firms. The comprehensive program includes quarterly webinars, updated investor materials and conference participation aimed at expanding the company's investor base.

Herbal Dispatch holds a unique position among Canadian public cannabis companies with the sector's longest growth runway. While competitors have already saturated all three core growth vectors -- national provincial listings (nine to 10 provinces; 100 to more than 300 SKUs), mature medical channels (30 to 60 per cent of revenue) and recurring exports to established clients -- Herbal Dispatch has not. The company stands alone in its ability to simultaneously double medical sales and provincial footprint/SKUs while tripling exports, opportunities its public peers exhausted years ago. This convergence of untapped channels positions Herbal Dispatch for the sharpest revenue acceleration in the entire public cannabis sector over the next 24 to 36 months.

To execute these four key strategic priorities, Herbal Dispatch has engaged a co-ordinated team of best-in-class agencies with defined roles to support the company. Paper Street Capital will execute a high-intensity investor awareness and institutional outreach program over a 90-day period. Concurrently, EnterMaurs Inc. will drive digital marketing, influencer campaigns and multiplatform content distribution to accelerate veteran medical sales and recreational market expansion.

Throughout 2026, Marfafa Inc. will deliver long-term content strategy, research, audience analysis and syndication to support all growth pillars with premium thought-leadership positioning. During the first quarter of 2026, Altura Media Co. Inc. will spearhead German-market export acceleration through localized advertising, German-language landing pages and creatives, daily optimization, native placements on Tier 1 finance/news sites, and influencer video content -- positioning Germany as a major revenue driver by 2028.

"We are excited to introduce this forward-thinking strategic plan that leverages our strengths in craft cannabis distribution and positions Herbal Dispatch for accelerated growth in a dynamic and rapidly expanding global market," said Philip Campbell, chief executive officer and director of Herbal Dispatch. "By focusing on veterans' needs, domestic expansion, international exports and enhanced investor engagement, we are committed to delivering exceptional value to our customers, partners and shareholders while upholding our core values of excellence, integrity, innovation and accountability."

The company has allocated approximately $410,000 in aggregate for these agencies to drive the key strategic priorities, financed from existing working capital. Herbal Dispatch believes that engaging these agencies will broaden the company's reach to potential investors and customers, thereby advancing its key strategic priorities. All engagements are subject to final acceptance by the Canadian Securities Exchange where required.

Herbal Dispatch confirms that all promotional materials, content and campaigns disseminated by these service providers will include clear, prominent disclosure that they have been engaged and compensated by the company, in full compliance with Canadian securities laws and the policies of the CSE.

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 CSE under the symbol HERB.

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