Mr. Philip Campbell reports

HERBAL DISPATCH PROVIDES MARKET UPDATE ON LAUNCH OF FIRST EDIBLE BRAND: CHOMP EDIBLES

Herbal Dispatch Inc. has launched its first dedicated edibles brand, Chomp Edibles, marking a strategic expansion into one of the fastest-growing segments of the Canadian cannabis market.

Chomp represents a focused push into the accessible-premium category -- delivering high-quality, craft-inspired edibles at a competitive price point designed to appeal to both new and experienced consumers. The brand is built to capture increasing demand for consistent, flavour-forward and precisely dosed cannabis products.

The initial Chomp lineup includes the following flavours: Grape, Cherry Coke, Cherry, Freshly Squeezed Orange and Blueberry, each developed using high-quality ingredients and designed to deliver a differentiated consumer experience.

The product line has been structured to align with evolving consumer preferences and regulatory developments, offering multiple dosing and pack configurations:

• 10 milligrams THC (tetrahydrocannabinol) (single unit);
• Five milligrams THC per unit (two-pack format);
• 10 milligrams THC with 10 pieces (master pack);
• 10 milligrams THC with 20 pieces (master pack).

The introduction of larger-format master packs reflects recent regulatory changes and is intended to improve consumer value, increase basket size and enhance purchasing convenience while maintaining full compliance.

Market opportunity

Edibles continue to gain significant traction within Canada's legal cannabis market. In Q1 2025, edibles accounted for approximately 26 per cent of total packaged units sold nationally, making it the second-largest category behind dried flower. The broader Canadian cannabis market reached approximately $5.2-billion in annual sales and is projected to continue expanding, with edibles representing one of the fastest-growing segments.

This shift reflects changing consumer preferences toward discreet, convenient and precisely dosed formats, reinforcing the strategic importance of the category.

Management commentary

"We are excited to launch Chomp Edibles as our first dedicated brand in this high-growth category," said Philip Campbell, chief executive officer of Herbal Dispatch. "Edibles -- and gummies in particular -- are rapidly becoming a dominant category in both medical and recreational markets. With strong domestic traction and growing consumer demand, we believe Herbal Dispatch is exceptionally well positioned to scale this segment aggressively and capture meaningful market share.

"Chomp allows us to capture a larger share of the edibles market while leveraging our existing platform, distribution capabilities and customer relationships. We see this as a key pillar of our growth strategy moving forward."

Distribution and expansion

Chomp Edibles is available through Herbal Dispatch's medical and veteran platforms as well as select wholesale channels across Canada, providing broad and growing national distribution. Medical patients can access Chomp through the company's platform, which offers personalized support and streamlined insurance-backed purchasing, reinforcing Herbal Dispatch's position as a leading provider of accessible, patient-focused cannabis solutions.

This launch represents a strategic step in Herbal Dispatch's continued evolution as a platform-driven cannabis company, focused on capturing high-growth categories, expanding margins, and scaling both domestically and internationally.

Herbal Dispatch will provide further updates as product expansion and additional export opportunities progress.

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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