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Herbal Dispatch Announces 2023 First Quarter Financial Results

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Herbal Dispatch Announces 2023 First Quarter Financial Results

Herbal Dispatch Announces 2023 First Quarter Financial Results

Vancouver, B.C. – Herbal Dispatch Inc. (formerly, Luff Enterprises Ltd.) (CSE: HERB) (“Herbal Dispatch” or the “Company”) is pleased to announce its financial results for the first quarter ended March 31, 2023.

The Company continued to make significant progress towards its strategic growth initiatives in the first quarter of 2023, achieving gross sales of $0.4 million, an over 60% increase from the previous quarter ended December 31, 2022. 

The Company’s monthly run rate revenue has also gone from less than $0.1 million in January 2023 to $0.3 million in April 2023 and an estimated $0.4 million in May 2023. Herbal Dispatch has grown its direct delivery platform from 38 to over 100 customers since the start of 2023 and now has over 1,500 active customers on its medical sales platforms. 

“We believe our online strategy is addressing many of the customer pain points in the cannabis industry.  We have also found a way to deliver a superior customer experience in a highly scalable, yet capital efficient manner,” said Philip Campbell, Herbal Dispatch’s President & CEO. “Our strategy is to utilize our growing online marketplace to identify and purchase best in class cannabis products that can be sold across all of our available product channels: direct to consumer (medical), wholesale to retailers (direct delivery recreational) and bulk sales (domestic & export). We are extremely pleased that this strategy is starting to bear fruit with strong monthly sales growth and the export order book is very promising.  We now plan to raise a small amount of equity to ensure steady investment in inventory.”

The Company expects that strong repeat orders and new customer growth will continue to drive strong month-over-month sales growth throughout the remainder of the year. In addition, the Company is seeing strong inbound interest in export sales that are expected to convert to revenue starting later in the second quarter.

On May 25, 2023 the Company announced that, subject to approval of the Canadian Securities Exchange (“CSE”), the Company intends to complete a non-brokered private placement ("Private Placement") of approximately 100,000,000 units of the Company (the “Units”) at a price of $0.01 per Unit for gross proceeds of $1,000,000. Each Unit shall consist of one common share and one common share warrant (a “Warrant”) with each Warrant exercisable for one common share at a price of $0.05 per share for a period of 24 months after the closing date. The Private Placement shall be completed on a best-efforts basis from eligible purchasers that shall be restricted to accredited investors or other investors meeting exemption requirements for a non- brokered private placement. 

Proceeds from the Private Placement will be used for working capital in support of the Company’s significant growth. Should the Private Placement be oversubscribed, the Company reserves the right to accept additional funds, subject to the approval of the CSE. 

The full version of the consolidated interim financial statements and associated management's discussion & analysis for the three months ended March 31, 2023 can be viewed under the Company's profile on SEDAR at www.sedar.com and will also be made available on the Company's website at www.herbaldispatch.com.

ABOUT HERBAL DISPATCH INC.

The Company owns and operates leading cannabis e-commerce platforms and is dedicated to providing top quality cannabis to informed consumers at affordable pricing. The Company’s flagship cannabis marketplace, herbaldispatch.com, is a trusted source for exclusive access to small-batch craft cannabis flower and a wide-array of other product formats. The Company’s common shares trade on the Canadian Securities Exchange under the symbol “HERB”.

For further information: 
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 2023 and beyond, which includes: (i) growing medical sales from its new online e-commerce platforms; (ii) growing recreational sales via direct delivery orders to retailers; (iii) growing revenue from manufacturing services; and (iv) achieving revenue growth from export sales. 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.

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