Mr. Philip Campbell reports

HERBAL DISPATCH PROVIDES UPDATE ON DOMESTIC RETAIL OPERATIONS AND PROPRIETARY BRAND EXPANSION

Herbal Dispatch Inc. has provided an update on the continued growth of its domestic retail operations and expanding portfolio of proprietary cannabis brands.

As part of its strategy to increase exposure to higher-margin branded products and build long-term customer relationships, Herbal Dispatch has continued investing in product and brand development sold through multiple distribution channels. The company now operates a growing portfolio of proprietary brands spanning dried flower, prerolls, infused prerolls, vapes, concentrates and edibles while leveraging an extensive network of licensed cannabis suppliers and production partners across Canada.

Accelerating recreational market presence

Over the past two months, Herbal Dispatch secured seven new product listings with the British Columbia Liquor Distribution Branch (BCLDB), including three permanent core listings and four limited-time offerings, significantly expanding the company's retail footprint within one of Canada's most competitive cannabis markets.

The newly secured core listings include:

• Happy Hour Pure Cake Skunk two-piece, one-gram prerolls, produced in collaboration with Coast Mountain Cannabis;
• Happy Hour Glacier Berry All-in-One Vape Pen (one gram);
• Happy Hour Pink Voltage All-in-One Vape Pen (one gram).

Additional limited-time offerings include collaborations with several respected British Columbia cannabis producers, including Coast Mountain Cannabis, Seastone Farm, Magi Cannabis, Common Roots Extracts and TWG Micro Cultivation.

These products span several of the industry's fastest-growing categories, including premium flower, prerolls, vape cartridges, cured resin products and all-in-one vape devices.

Collaborative craft model driving product innovation

A key component of Herbal Dispatch's recreational strategy is its collaborative craft model, which enables the company to work alongside leading cultivators and processors to bring differentiated, small-batch products to market while maintaining an asset-light operating structure.

Through these partnerships, Herbal Dispatch is able to curate premium cannabis offerings while focusing internal resources on branding, commercialization, customer acquisition and distribution.

Expansion of proprietary brands

The company continues to expand its portfolio of proprietary cannabis brands, which now includes more than 40 different SKUs (stock-keeping units) across multiple product categories.

Recent expansion includes the launch of Chomp, Herbal Dispatch's new edible brand, and Northern Drip, its recently introduced concentrates and extracts platform.

Chomp features live rosin-infused gummies formulated in British Columbia by a Red Seal chef, focusing on full-spectrum effects, nostalgic flavour profiles and premium ingredients.

Northern Drip represents Herbal Dispatch's entry into the rapidly growing concentrates category. The initial product lineup includes strain-specific shatter products produced in British Columbia using premium genetics and small-batch production focused on potency and flavour. Future product development is expected to include solventless hash rosin, live resin concentrates, strain-specific vape cartridges and additional extract-based formats.

Today, Herbal Dispatch's house-brand portfolio includes Buzz, Happy Hour, Chomp, Nu and Northern Drip, collectively spanning flower, prerolls, vapes, edibles, concentrates and wellness products.

Building a scalable cannabis commerce platform

Herbal Dispatch's strategy is centred on building a cannabis e-commerce platform that captures value through brands, customer relationships and distribution infrastructure rather than cultivation assets.

The company also continues investing in technology, automation and artificial intelligence initiatives designed to improve customer acquisition, enhance product discovery, streamline operations and support long-term scalability across its retail, veteran and international business segments.

Management commentary

Philip Campbell, chief executive officer of Herbal Dispatch, commented: "The momentum we're seeing in the recreational channel reflects both strong consumer demand and the strength of our collaborative model. By working with some of the most respected cultivators and producers in British Columbia, we're able to consistently bring differentiated, high-quality products to market while continuing to expand our brand portfolio.

"Our objective is not simply to launch products, but to build brands that consumers actively seek out. With new provincial listings, expanding product categories, and the successful launch of Chomp and Northern Drip, we believe we are creating a stronger and more diversified platform capable of supporting long-term growth.

"The recreational channel remains an important component of the broader Herbal Dispatch ecosystem. It provides valuable customer relationships, commercialization opportunities and brand-building capabilities that support not only our retail operations, but also our medical, veteran and international growth initiatives."

Outlook

The company expects continued expansion of its proprietary brand portfolio, additional provincial listings, new product introductions and continuing technology enhancements throughout 2026. Herbal Dispatch remains focused on delivering quality, consistency, innovation and brand differentiation across all product categories while continuing to build a diversified cannabis commerce platform with multiple long-term growth drivers.

The company recently released an updated investor presentation outlining its strategic evolution, operational milestones and growth opportunities across retail, veterans, proprietary brands and international exports. The presentation is available on the company's investor relations website.

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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