Mr. Philip Campbell reports

HERBAL DISPATCH ADVANCES U.S. STRATEGY AMID HISTORIC CANNABIS RESCHEDULING SHIFT

Herbal Dispatch Inc. has provided an update on recent regulatory developments in the United States relating to the proposed rescheduling of cannabis under the Controlled Substances Act.

The U.S. Department of Health and Human Services has recommended that cannabis be reclassified from Schedule I to Schedule III, a move that, if finalized by the Drug Enforcement Administration, would represent a transformational shift for the U.S. cannabis industry and a major catalyst for capital inflows, institutional participation and sector rerating.

Accelerating U.S. strategy

Herbal Dispatch is actively advancing its U.S. strategy in response to these developments, positioning the company to capitalize on what management believes is a generational inflection point in the cannabis sector.

The company is evaluating multiple pathways to enter the U.S. market, with a primary focus on medical cannabis channels, where Herbal Dispatch has established expertise. The company's capabilities in patient acquisition, insurance-supported programs (including veteran-focused services) and direct-to-consumer medical distribution are highly aligned with emerging U.S. medical frameworks.

Management is actively assessing:

• Strategic partnerships and joint ventures;
• Platform-led distribution opportunities;
• Entry into regulated medical channels as they expand.

Herbal Dispatch's asset-light, technology-enabled model is designed to enable rapid execution with limited capital intensity, allowing the company to scale efficiently as opportunities materialize.

Capital markets positioning

With its OTCQB listing (sumbol: LUFFF) and recent DTC (Depository Trust Company) eligibility, Herbal Dispatch is positioned to benefit from increased U.S. investor participation as the sector gains renewed attention. The company expects these developments to drive improved liquidity, broader investor reach and enhanced valuation visibility.

Market context

Rescheduling to Schedule III is expected to:

• Eliminate the impact of Internal Revenue Code Section 280E, significantly improving operator profitability;
• Improve access to institutional capital and financial services;
• Accelerate consolidation and strategic investment across the sector.

These changes are widely expected to catalyze a rerating of cannabis equities and expand participation from both institutional and retail investors.

Outlook

Herbal Dispatch believes the proposed rescheduling represents a pivotal moment for the global cannabis industry. The company is proactively positioning to participate in the next phase of industry growth, with a clear focus on expanding into U.S. medical cannabis channels while continuing to scale its Canadian operations.

As regulatory clarity improves, Herbal Dispatch expects to advance its U.S. initiatives and will provide updates as strategic opportunities are executed.

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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