Mr. Philip Campbell reports

HERBAL DISPATCH LAUNCHES NEXT-GENERATION E-COMMERCE PLATFORM, TARGETING HIGH-GROWTH $245 MILLION INSURED MEDICAL CANNABIS SEGMENT

Herbal Dispatch Inc. has launched the upgraded HeroDispatch.com, alongside significant enhancements to HerbalDispatch.com for standard medical patients.

These upgraded platforms are designed to position Herbal Dispatch as a preferred partner for both patients and clinic operators nationwide, delivering improvements across integration, user experience and operational scalability.

Platform advantages

The enhanced HeroDispatch platform streamlines clinic workflows and elevates the patient experience, creating a more efficient and scalable medical channel. Herbal Dispatch operates a portfolio of Shopify-based e-commerce platforms tailored to distinct customer segments, enabling the company to optimize user experience, marketing and product offerings while leveraging a shared back-end infrastructure. HeroDispatch.com serves as the company's dedicated platform for veterans and insured medical patients, supporting insurance-backed purchasing and clinic integration to drive higher conversion, retention and lifetime value within this segment. The veteran channel delivers strong unit economics for the company, with gross margins exceeding 50 per cent reinforcing its position as a highly scalable and high-quality recurring revenue stream.

For customers, the platform delivers a simplified and personalized experience through curated product selection, transparent pricing, concierge-style support and seamless direct insurance billing. These features support strong patient satisfaction, high retention and recurring revenue.

Strategic market opportunity

The upgraded HeroDispatch.com targets Canada's large and underpenetrated insured medical cannabis segment for veterans and fully insured patients -- a market driven primarily by Veterans Affairs Canada reimbursements of approximately $245-million annually based on recent reporting, with reimbursements expected to continue to grow into 2026.

Canada currently has approximately greater than 600,000 veterans, with research from Statistics Canada indicating that chronic pain is one of the highest causes of disability or activity limitation for veterans. Chronic pain is one of the most common conditions where medical cannabis is used; however, only approximately 30,000 veterans are currently participating in reimbursement programs, indicating significant underpenetration and a substantial opportunity to expand adoption within this segment.

Despite recent policy adjustments in Budget 2025, the company continues to see resilient demand in this segment, which is characterized by high retention and recurring purchasing. Herbal Dispatch believes this positions HeroDispatch as a leading platform to capture share in one of the most attractive verticals in Canadian cannabis.

The company believes HeroDispatch is well positioned to become a leading platform for insured medical cannabis patients in Canada, supported by its integrated technology, patient-centric model and expanding national footprint.

Future initiatives

In parallel, Herbal Dispatch is evaluating the launch of its own medical clinic to enhance service delivery, accelerate onboarding and capture additional value across the patient life cycle. The company currently incurs recurring third party costs related to initial patient registration and annual renewals; internalizing these functions is expected to materially increase per-patient margin contribution while improving conversion, retention and overall operating leverage.

"HeroDispatch.com represents a meaningful advancement in how we provide medical cannabis to our customers. We have focused on eliminating friction for clinics while delivering a more seamless and personalized experience for patients. The strength of our model is reflected in our retention and ongoing patient engagement, and we continue to see increasing adoption from both patients and health care providers," stated Philip Campbell, chief executive officer of Herbal Dispatch. "From a business standpoint, this channel is highly efficient, with strong margins and recurring revenue that support long-term scalability and predictable growth."

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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