Vancouver, British Columbia--(Newsfile Corp. - May 7, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company"), is pleased to provide an update on the continued growth and expansion of its veteran-focused medical cannabis channel.
The Company has experienced sustained acceleration in veteran customer acquisition, driven by targeted outreach, streamlined onboarding, and a dedicated service model tailored to the needs of veterans. Herbal Dispatch is currently onboarding hundreds of new veteran clients per month, demonstrating accelerating demand and continued optimization of its veteran acquisition and conversion strategy.
This growth has resulted in an expanding base of active veteran clients and increasing recurring sales contribution from the insured medical channel. Veteran customers typically demonstrate strong retention and consistent monthly purchasing behaviour, supporting a predictable and scalable revenue stream.
The veteran channel represents one of the most attractive segments within the Company's business model. On average, the Company sees approximately $7,000 in annual insured spend per client. Combined with 50%+ gross margins and high customer retention rates, results in a highly scalable recurring revenue stream. The Company continues to invest in this channel as a priority growth area, given its strong lifetime value characteristics and efficient customer acquisition profile.
In the first quarter of 2026, the Company increased veteran registrations by approximately 400% compared to all of 2025. Notably, total insured cannabis gross sales revenue for the full year 2025 was $675,000, nearly matched in the first fourth months of 2026 alone-implying a current annualized run rate of ~$2.23 million. This run rate is expected to continue to increase over 2026 as the Company builds out its veteran marketing and sales platform.
| Herbal Dispatch Insured Medical Cannabis Sales Snapshot |
| 2025 | Q1 2026 | Current (Apr 2026) | Q2 2026 (Est.) |
| Gross sales | $675,000 | $438,000 | $186,000 | ~$850,000 |
| Annualized sales | $675,000 | $1.75M | ~$2.23M | ~$3.5M-$4M |
Dedicated Veteran Channel & Insurance-Focused Service
Herbal Dispatch operates a dedicated channel for veterans, offering bespoke services designed to simplify access to medical cannabis, with a particular focus on insurance-supported care, including programs administered through Blue Cross.
The Company provides a concierge-style service, where orders are curated for clients based on individual preferences, medical needs, and coverage parameters. This model is designed to reduce friction for patients navigating insurance processes, and create alignment with eligible coverage, ensuring each client fully utilizes their monthly insurance allotment while optimizing outcomes and consistency of care.
Veterans Affairs Canada Medical Cannabis Program Growth
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Strategic Importance of Veteran Channel
The veteran segment remains a core growth pillar for the Company. Canada had approximately 461,000 veterans in 2021 according to Statistics Canada, with broader estimates suggesting the current total veteran population exceeds 600,000 individuals1. A significant portion of this population suffers from conditions widely recognized as appropriate for medical cannabis treatment, including chronic pain, representing a substantial addressable patient base.
Government-supported insurance programs have historically funded a substantial portion of medical cannabis access for veterans, with total reimbursements under Veterans Affairs Canada programs-administered through Medavie Blue Cross-totaling $244.6 million in 2025 and $191.7 million in 2024, representing a current annual run-rate of approximately $230-$245 million 2. Recent reporting indicates that approximately 31,000+ veterans are currently participating in the program 3, underscoring both the scale and continued growth of this channel.
The Company's integrated model-combining product access, administrative support, and insurance alignment-positions it to capture market share within this underserved segment.
Operational Scaling
"We are seeing veteran sales gain real momentum and begin to scale in a compounding way," said Philip Campbell, CEO of Herbal Dispatch. "As a result of ongoing investment in our medical platform, we are now seeing accelerating onboarding, strong retention, and increasing utilization per patient, which is driving consistent growth and setting the stage for meaningful long-term expansion of this channel."
To support continued growth, Herbal Dispatch has expanded its customer service capabilities, enhanced internal systems for patient intake and insurance coordination, and strengthened relationships with prescribing clinics and healthcare providers.
Outlook
Herbal Dispatch expects the veteran channel to remain a key driver of revenue growth. The Company will continue to invest in this segment through targeted acquisition strategies and ongoing enhancement of its insurance-supported, concierge-driven service model.
Sources:
1 https://www12.statcan.gc.ca/census-recensement/2021/ref/98-20-0002/982000022021001-eng.cfm
2 https://www.veterans.gc.ca/en/about-vac/reports-policies-and-legislation/departmental-reports/cannabis-medical-purposes
3 https://www.veterans.gc.ca/en/contact-us/help/faqs/cannabis-medical-purposes-revised-reimbursement-policy
ABOUT HERBAL DISPATCH INC.
Herbal Dispatch Inc. 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".
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, the anticipated growth of the veteran sales channel for Herbal Dispatch. The successful execution of these initiatives is subject to a number of risks and uncertainties, including industry competition, future benefit coverages by insurance providers, 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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