Mr. Philip Campbell reports

HERBAL DISPATCH REPORTS ACCELERATING VETERAN CUSTOMER GROWTH AND EXPANSION OF INSURANCE-FOCUSED SERVICE CHANNEL

Herbal Dispatch Inc. has provided 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-per-cent-plus gross margins and high customer retention rates, this 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 per cent compared with all of 2025. Notably, total insured cannabis gross sales revenue for full-year 2025 was $675,000, nearly matched in the first fourth months of 2026 alone -- implying a current annualized run rate of approximately $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.

Dedicated veteran channel and 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.

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 individuals. 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 financed a substantial portion of medical cannabis access for veterans, with total reimbursements under Veterans Affairs Canada programs -- administered through Medavie Blue Cross -- totalling $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 approximately 31,000-plus veterans are currently participating in the program, 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, chief executive officer 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 co-ordination, and strengthened relationships with prescribing clinics and health care 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 continuing enhancement of its insurance-supported, concierge-driven service model.

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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