Herbal Dispatch Unveils Strategic Business Plan for 2026 to Drive Sustainable Growth and Enhance Shareholder Value

Rhea-AI Summary

Herbal Dispatch (OTC: LUFFF) announced a Strategic Business Plan for 2026 targeting accelerated revenue, improved gross margins and EBITDA via four priorities: 1) grow medical cannabis sales to veterans (targeting 200% annual increase, 30% YoY veteran acquisition, >89% retention); 2) expand recreational presence (targeting 40% YoY recreational growth, BC SKUs from 44 to 100+, BC share target 15%); 3) scale B2B exports (aim to triple export volumes by 2028 and 100% YoY export revenue); and 4) increase investor awareness via IR firms. The company completed a $2.0M private placement in Oct 2025 and allocated ~CAD $410,000 for agency programs funded from working capital.

Positive

• $2.0M private placement completed in October 2025
• Allocated CAD $410,000 to agency programs to support 2026 plan
• Targeting 200% annual growth in veteran medical sales
• Aiming to increase BC SKUs from 44 to 100+
• Plan to triple export volumes by 2028 with GMP/EU-GMP investments

Negative

• Agency program funding of CAD $410,000 drawn from working capital
• Aggressive targets (200% veterans, 40% recreational, 100% export YoY) lack guaranteed revenue backing
• Export volumes target depends on entering multiple foreign markets and regulatory compliance

Vancouver, British Columbia--(Newsfile Corp. - December 11, 2025) - Herbal Dispatch Inc. (CSE: HERB) (OTC Pink: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company"), a leading cannabis e-commerce and distribution platform, today announced its comprehensive Strategic Business Plan for 2026. This plan builds on the Company's robust historical performance, aiming to significantly accelerate revenues while improving gross margins and EBITDA.

The plan outlines four key priorities designed to expand market share, foster innovation, and deliver long-term value to stakeholders. With a successful $2 million private placement completed in October 2025 and three consecutive years of triple-digit annual sales growth, the Company is well-positioned to execute this ambitious strategy.

Key Strategic Priorities:

1) Enhancing Medical Cannabis Sales to Veterans: The Company aims to increase sales in this segment by 200% annually, through partnerships with veterans' organizations such as the Royal Canadian Legion and Veterans Affairs Canada, development of veteran-specific product bundles, and targeted marketing campaigns focused on benefits for conditions such as PTSD, pain, and anxiety. Key performance indicators (KPIs) include 30% year-over-year (YoY) growth in veteran customer acquisition and maintaining a retention rate above 89%.

Cannabis for Medical Purposes Expenditures (Health Canada)¹

Fiscal year	Clients	Reimbursed amount	Grams reimbursed
2021-2022	18,388	$153,780,985	19,351,466
2022-2023	21,108	$167,568,202	21,270,150
2023-2024	24,146	$191,708,163	24,329,042
2024-2025	27,643	$244,633,936	30,310,563
2025-2026 (YTD)	26,325	$68,247,190	8,236,906

 

2) Expanding Recreational Sales to Additional Provinces and Deepening Penetration in British Columbia (BC): Herbal Dispatch aims to achieve 40% YoY growth in recreational sales. This will involve securing listings with additional provincial cannabis wholesalers, expanding SKU counts in existing markets from 44 to over 100 in British Columbia alone (with similar growth targeted in new provinces), and investing in e-commerce platform upgrades featuring AI-driven personalization and recommendations. KPIs include entering new provinces and boosting the British Columbia market share to 15%.

Monthly Retail Cannabis Sales by Province and Territory (x $1,000)²

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6253/277658_4a7e6ad534d1e8c9_002full.jpg

3) Growing B2B Exports to Federally Legal Countries: The Company targets tripling export volumes by 2028. Efforts will focus on strengthening partnerships in existing markets (Australia, Portugal, Germany, Brazil, and Czech Republic) and entering new markets including the UK, Switzerland, Costa Rica and New Zealand, with investments in GMP/EU-GMP compliance and participation in international trade shows. KPIs include 100% YoY export revenue growth and adding 2-3 new markets annually.

Canadian Cannabis International Shipments (Exports only, total kg)³

Year	Total (kg)
2019	1,311.14
2020	21,210.35
2021	53,082.35
2022	115,972.38
2023	210,433.50
2024	361,896.41
2025	155,177.17 (est. 620,708 kg for the year)

 

4) Increasing Investor Awareness Through IR Marketing Companies: To enhance liquidity and attract institutional investors, Herbal Dispatch will engage specialized investor relations and marketing firms. The comprehensive program includes quarterly webinars, updated investor materials, and conference participation aimed at expanding the Company's investor base.

Herbal Dispatch holds a unique position among Canadian public cannabis companies with the sector's longest growth runway. While competitors have already saturated all three core growth vectors — national provincial listings (9-10 provinces, 100-300+ SKUs), mature medical channels (30-60% of revenue), and recurring exports to established clients — Herbal Dispatch has not. The Company stands alone in its ability to simultaneously double medical sales and provincial footprint/SKUs while tripling exports, opportunities its public peers exhausted years ago. This convergence of untapped channels positions Herbal Dispatch for the sharpest revenue acceleration in the entire public cannabis sector over the next 24-36 months.

To execute these four Key Strategic Priorities, Herbal Dispatch has engaged a coordinated team of best-in-class agencies with defined roles to support the Company. Paper Street Capital will execute a high-intensity investor awareness and institutional outreach program over a 90-day period. Concurrently, EnterMaurs Incorporated will drive digital marketing, influencer campaigns, and multi-platform content distribution to accelerate veteran medical sales and recreational market expansion.

Throughout 2026, Marfafa Inc. will deliver long-term content strategy, research, audience analysis, and syndication to support all growth pillars with premium thought-leadership positioning. During the first quarter of 2026, Altura Media Co Inc. will spearhead German-market export acceleration through localized advertising, German-language landing pages and creatives, daily optimization, native placements on tier-1 finance/news sites, and influencer video content-positioning Germany as a major revenue driver by 2028.

"We are excited to introduce this forward-thinking strategic plan that leverages our strengths in craft cannabis distribution and positions Herbal Dispatch for accelerated growth in a dynamic and rapidly expanding global market," said Philip Campbell, CEO and Director of Herbal Dispatch. "By focusing on veterans' needs, domestic expansion, international exports, and enhanced investor engagement, we are committed to delivering exceptional value to our customers, partners, and shareholders while upholding our core values of excellence, integrity, innovation, and accountability."

The Company has allocated approximately CAD $410,000 in aggregate for these agencies to drive the Key Strategic Priorities, funded from existing working capital. Herbal Dispatch believes that engaging these agencies will broaden the Company's reach to potential investors and customers, thereby advancing its Key Strategic Priorities. All engagements are subject to final acceptance by the Canadian Securities Exchange where required.

Herbal Dispatch confirms that all promotional materials, content, and campaigns disseminated by these service providers will include clear, prominent disclosure that they have been engaged and compensated by the Company, in full compliance with Canadian securities laws and the policies of the Canadian Securities Exchange.

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, 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. 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 Company's ability to execute its Strategic Business Plan for 2026, which includes its ability to: (a) enter into partnerships with veterans' organizations, (b) secure listings with additional provincial cannabis wholesalers, (c) rely on existing partnerships and enter new markets in federal legal countries, and (d) promote market and investor participation. 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. 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.

Sources:

1. https://www.veterans.gc.ca/en/about-vac/reports-policies-and-legislation/departmental-reports/cannabis-medical-purposes#statistics
2. https://stratcann.com/news/canadian-retail-cannabis-sales-continue-to-show-annual-growth/
3. https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/medical-purpose.html#a7

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/277658

FAQ

What does Herbal Dispatch (LUFFF) plan for veteran medical sales in 2026?

Herbal Dispatch aims to grow veteran medical sales by 200% annually, target 30% YoY veteran acquisition and >89% retention.

How much funding did Herbal Dispatch announce to support the 2026 strategic plan (LUFFF)?

The company completed a $2.0M private placement in October 2025 and allocated ~CAD $410,000 for agency engagements funded from working capital.

What are Herbal Dispatch's (LUFFF) recreational growth and BC SKU targets for 2026?

Targets include 40% YoY recreational sales growth and expanding BC SKUs from 44 to over 100, with a BC market share goal of 15%.

What export goals did Herbal Dispatch (LUFFF) set for international B2B sales?

The company plans to triple export volumes by 2028, pursue GMP/EU-GMP compliance, and add 2–3 new markets per year.

Which agencies will Herbal Dispatch (LUFFF) engage to execute the plan and what is the timeline?

Paper Street Capital (90-day investor outreach), EnterMaurs (digital marketing), Marfafa (content strategy) and Altura Media (German-market export work starting Q1 2026) were engaged.

Will Herbal Dispatch (LUFFF) disclose agency compensation in promotional materials?

Yes; the company confirmed all promotional materials will prominently disclose that service providers are engaged and compensated by the company.