Herbal Dispatch Announces Vesting of RSUs and Satisfaction of Certain Outstanding Fees

Rhea-AI Summary

Herbal Dispatch (OTCQB:LUFFF) updated on previously granted RSUs and share issuances. Of 2,760,000 RSUs granted under its equity plan, 920,000 vested on July 1, 2026, resulting in issuance of 920,000 common shares. The company also issued 1,430,705 shares to settle debt at a deemed price of CAD$0.05, subject to a four‑month‑plus‑one‑day hold period.

Positive

• 920,000 RSUs vested, reinforcing equity-based compensation alignment
• 1,430,705 shares issued to satisfy outstanding debt without cash outlay

Negative

• Total of 2,350,705 new common shares issued, increasing share count and potential dilution

News Market Reaction – LUFFF

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In the Jul 2 session, LUFFF gained 1.94%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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Vancouver, British Columbia--(Newsfile Corp. - July 2, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company") is providing this update in furtherance to its news release dated January 2, 2026, whereby it announced the granting in aggregate of 2,760,000 restricted share units ("RSUs").

The RSUs which were granted to certain officers, directors, employees, and consultants of the Company pursuant to the Company's amended and restated stock option plan and restricted share unit plan dated effective October 16, 2020 (the "Plan"), are to vest in three equal installments on July 1, 2026, January 1, 2027, and July 1, 2027, respectively, and are to remain valid so long as the individual continues to be an "Eligible Person" as such term is defined in the Plan.

Following the completion of the first vesting period on July 1, 2026, the Company has caused the issuance in aggregate of 920,000 common shares.

In addition to the foregoing, the Company has also caused the issuance of 1,430,705 common shares in satisfaction of certain outstanding debt obligations of the Company. Each common share in this regard has a deemed issuance price of CAD$0.05. The securities issued in satisfaction of the debt obligations are subject to a statutory hold period of four months and one day from the date of issuance pursuant to applicable Canadian securities laws.

ABOUT HERBAL DISPATCH

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 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. 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.

THE CANADIAN SECURITIES EXCHANGE (THE "CSE") HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS NEWS RELEASE. NEITHER THE CSE NOR ITS MARKET REGULATOR (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303691

FAQ

What did Herbal Dispatch (LUFFF) announce on July 2, 2026 about RSUs?

Herbal Dispatch announced that 920,000 RSUs vested on July 1, 2026, under its equity plan. According to the company, these RSUs are part of 2,760,000 units granted to officers, directors, employees, and consultants in three equal installments.

How many new Herbal Dispatch (LUFFF) shares were issued from RSU vesting?

Herbal Dispatch issued 920,000 common shares following completion of the first RSU vesting period. According to the company, these shares relate to RSUs granted that vest in three equal installments through January 1, 2027 and July 1, 2027.

How many Herbal Dispatch (LUFFF) shares were issued to settle debt and at what price?

Herbal Dispatch issued 1,430,705 common shares to satisfy certain outstanding debt obligations. According to the company, each share issued for debt has a deemed issuance price of CAD$0.05 and is subject to a statutory hold period.

What is the hold period for Herbal Dispatch (LUFFF) shares issued for debt?

The shares issued to satisfy Herbal Dispatch’s debt carry a statutory hold period of four months and one day. According to the company, this restriction applies under applicable Canadian securities laws from the date of issuance.

What is the vesting schedule for Herbal Dispatch (LUFFF) restricted share units?

The 2,760,000 Herbal Dispatch RSUs vest in three equal installments of 920,000 units. According to the company, vesting dates are July 1, 2026, January 1, 2027, and July 1, 2027, subject to recipients remaining eligible under the plan.

How might Herbal Dispatch’s July 2026 share issuances affect LUFFF shareholders?

The issuance of 2,350,705 new common shares increases Herbal Dispatch’s total share count. According to the company’s disclosure, this includes 920,000 shares from RSU vesting and 1,430,705 shares issued to satisfy outstanding debt obligations.