Mr. Philip Campbell reports

THIRD CONSECUTIVE YEAR OF DOUBLE DIGIT GROWTH - HERBAL DISPATCH RECAPS KEY MILESTONES FOR 2025

Herbal Dispatch Inc. has recapped its key milestones achieved in 2025.

In 2025, the company continued to advance its strategic and operational objectives. Through notable sales growth, the completion of an oversubscribed private placement and the introduction of new products, the company bolstered its operations and financial standing, setting it up well for 2026.

Herbal Dispatch's 2025 highlights:

• Achieved three consecutive years of double-digit annual sales growth, reflecting strong performance in the cannabis e-commerce market;
• Preliminary gross sales for Q4 2025 of $6.2-million*, a 214-per-cent increase from gross sales of $2.9-million in the fourth quarter of 2024, supported by expansion efforts and the British Columbia General Employee's Union strike;
• Preliminary gross sales for fiscal 2025 of $16.5-million, a 38-per-cent increase from gross sales of $12.0-million in 2024;
• Launched several new in-house brands into the Canadian market, which included flower, prerolls and vape products;
• Completed an oversubscribed $2-million private placement in October to finance growth initiatives.

* Although still being finalized, the company expects its gross margins for Q4 2025 to be similar to that reported in recent quarters.

"Two thousand twenty-five marked a pivotal year for Herbal Dispatch as we continued to accelerate our growth and solidify our market presence in Canada and overseas," said Philip Campbell, chief executive officer. "We delivered double-digit growth for the third consecutive year, significantly expanded our product offerings and secured strategic investments to fuel continued innovation. Since our founding, we have built a trusted brand that prioritizes quality, convenience and customer satisfaction. With strong sales momentum and a clear strategic roadmap ahead, we are well positioned for sustained growth and new opportunities."

Key strategic priorities for 2026:

Herbal Dispatch's strategic plan for 2026 consists of key priorities designed to expand market share, foster innovation and deliver long-term value to stakeholders.

1. Enhancing medical cannabis sales to veterans: 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, 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 (B.C.): Herbal Dispatch aims to achieve 40-per-cent year-over-year (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 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 (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 (countries) annually.

About Herbal Dispatch Inc.

Herbal Dispatch is a leading operator of cannabis e-commerce platforms in Canada, delivering quality medical and recreational products to discerning consumers at competitive prices. Its flagship marketplace has earned trust as a premier destination for exclusive access to small-batch craft cannabis and a wide selection of curated cannabis products. The company is also actively expanding through exports to international markets, positioning it for sustained growth and new revenue opportunities. The company's common shares trade on the Canadian Securities Exchange under the symbol HERB.

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