Third Consecutive Year of Double Digit Growth - Herbal Dispatch Recaps Key Milestones for 2025

Vancouver, British Columbia--(Newsfile Corp. - January 13, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTC Pink: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company") a leading cannabis e-commerce and distribution platform, is pleased to recap 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 over-subscribed 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% increase from gross sales of $2.9 million in the fourth quarter of 2024, supported by expansion efforts and the BC General Employee's Union strike.
• Preliminary gross sales for fiscal 2025 of $16.5 million, a 38% increase from gross sales of $12.0 million in 2024.
• Launched several new in-house brands into the Canadian market, which included flower, pre-rolls and vape products.
• Completed an oversubscribed $2 million private placement in October to fund growth initiatives.

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

"2025 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% year-over-year (YoY) growth in veteran customer acquisition and maintaining a retention rate above 89%.
2. Expanding Recreational Sales to Additional Provinces and Deepening Penetration in British Columbia (BC): Herbal Dispatch aims to achieve 40% YoY growth in recreational sales. This will involve securing listings with additional provincial cannabis wholesalers, expanding SKU 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%.
3. Growing B2B 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 UK, Switzerland, Costa Rica and New Zealand, with investments in GMP/EU-GMP compliance and participation in international trade shows. KPIs include 100% YoY export revenue growth and adding 2-3 new markets (countries) annually.

ABOUT HERBAL DISPATCH INC.

Herbal Dispatch Inc. (CSE: HERB) 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".

For further information contact:

Philip Campbell, CEO and Director
Email: IR@herbaldispatch.com
Telephone: 1-833-432-2420

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

Certain statements in this news release, including statements or information containing terminology such as "anticipate", "believe", "intend", "expect", "estimate", "may", "could", "will", and similar expressions constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events, or developments that the Company or a third party expect or anticipate will or may occur in the future, including the Company's future growth, results of operations, performance, and business prospects and opportunities are forward-looking statements. These forward-looking statements reflect the Company's current beliefs and are based on information currently available to the Company. These statements require the Company to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties.

Actual results and developments may differ materially from the anticipated results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond the Company's control. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable. Examples of forward-looking statements in this news release and the key assumptions and risk factors involved in such statements include, but are not limited to, executing the Company's strategic growth initiatives for 2026, including growing sales both domestically and via export, achieving its preliminary 2025 gross revenue estimates and achieving gross margins in Q4 2025 similar to recent quarters. The successful execution of these initiatives is subject to a number of risks and uncertainties, including industry competition, and future customer demand for the Company's products, among others.

Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected effects on the Company. These forward-looking statements are made as of the date of this news release. Except as required by applicable securities legislation, the Company assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

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