Mr. Philip Campbell reports

HERBAL DISPATCH ACCELERATES VETERAN PROGRAM GROWTH AND EXPANDS ACCESS WITH NEW CLINIC PARTNERSHIP

Herbal Dispatch Inc. has issued a progress report on Hero Dispatch, the company's medical cannabis program for Canadian veterans, and highlighted the continued expansion of its strategic partner network supporting veteran patient access.

Program highlights

Hero Dispatch serves Canadian veterans eligible for medical cannabis reimbursement through Veterans Affairs Canada (VAC). Key highlights include:

• Veteran growth: over 1,100 active medical registrations (registered veterans) as of Nov. 1, 2026, up from 103 as of Jan. 1, 2026 (an increase of approximately 968 per cent);
• Reimbursement run rate: Current run rate approximately $6-million annualized, compared with $675,000 for full-year 2025 (an increase of approximately 789 per cent);
• Patient economics and engagement: an 89-per-cent customer retention rate and approximately $6,000 in average annual insured reimbursement per registered veteran;
• Patient outreach: serving Canada's veteran population, estimated by VAC at over 600,000 individuals in 2021; to support its outreach efforts, the company recently added a second fully bilingual sales agent to its team; the new agent will help expand sales outreach and client care services;
• Growth outlook: the company is working toward a goal of reaching approximately 3,000 registered veterans by the end of 2027, which, if achieved, could support an annualized gross sales run rate of approximately $18-million.

Government-supported insurance programs have historically funded a substantial portion of medical cannabis access for veterans. Total reimbursements under VAC programs -- administered through Medavie Blue Cross -- reached $244.6-million in 2025 and $191.7-million in 2024, representing a current annual run rate of approximately $230-million to $245-million. Recent reporting indicates that more than 31,000 veterans currently participate in the program, reflecting the meaningful scale of this channel.

New clinic network agreement

Herbal Dispatch continues to expand its Canadian health care network. The company recently partnered with a multilocation medical practice with more than 20 physicians and specialists. The partnership gives Herbal Dispatch clients a single, co-ordinated path to medical cannabis care.

Under the agreement, the clinic will support the company's veteran clients through each stage of the process:

• Medical authorizations: consultations with qualified physicians and specialists to assess eligibility for medical cannabis;
• Benefits onboarding: help with paperwork and approvals so veterans can access the coverage they are entitled to;
• Direct billing: streamlined billing through VAC and Medavie Blue Cross, which reduces or removes out-of-pocket costs and reimbursement delays.

The partnership extends Herbal Dispatch's patient reach and strengthens its domestic medical channel.

Management commentary

"Veterans represent the fastest-growing segment of our business, and we are building our Hero Dispatch platform to serve them effectively over the long term," said Philip Campbell, chief executive officer of Herbal Dispatch. "This new clinic agreement expands access points for veterans to discover and join our program while we continue investing in the team and systems required to meet strong patient demand."

About Herbal Dispatch Inc.

Herbal Dispatch is a Canadian cannabis commerce and international distribution company supported by proprietary brands, strategic partnerships and digital infrastructure. It operates through three channels: provincial wholesale and retail distribution, direct-to-consumer and medical platforms (including the Hero Dispatch program for Canadian veterans), and global medical cannabis exports.

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