Vancouver, B.C. -- TheNewswire -- August 22, 2024 – Herbal Dispatch Inc. (CSE: HERB) (“Herbal Dispatch” or the “Company”) is pleased to announce its financial results for the second quarter ended June 30, 2024. Gross revenue in Q2 2024 increased to $4.3 million, reflecting in increase of over 300% from Q2 last year. On a year-to date basis, the Company generated $5.9 million in gross revenue, surpassing the total revenue for the entire year of 2023. Strong growth in both domestic recreational cannabis sales and exports were the main drivers of this increase.

 

Herbal Dispatch also reported positive adjusted EBITDA of $0.2 million and positive net income of $59 thousand in Q2 2024, which marked the Company’s first profitable quarter since the initial launch of herbaldispatch.com in the fall of 2022.

 

In Q2 2024, Herbal Dispatch exported more than 1,000 kilograms of cannabis to clients in Australia and Portugal. This was more than double the amount exported in 2023 and marks a significant expansion in the Company’s international strategy.  Herbal Dispatch also expects further growth in export volume in the coming quarters, driven by increasing demand in international markets and the establishment of new client relationships across multiple countries.

 

The Company is also continuing to achieve strong growth in domestic sales. This includes the Company’s "Happy Hour" brand, which has been well received in the market since its launch earlier this year. This brand includes an affordable range of offerings like pre-rolls, vapes, flower, and THCA toppers, with more products launching this year. Known for its flavourful and bright offerings, "Happy Hour" products are competitively priced to appeal to a broad range of consumers, providing refreshing options for those seeking high-quality cannabis experiences at accessible price points.

 

“We are encouraged by the strong revenue growth, export milestones, and net profit achieved in the second quarter of 2024,” commented Philip Campbell, Herbal Dispatch’s President and CEO. “In the coming quarters we will remain focused on expanding profitable sales channels while efficiently scaling our operations to support our goals.  The success of our 'Happy Hour' brand, which we will expand across Canada in the quarters ahead, and the growth in exports to international markets is providing us with many promising growth opportunities.”

 

Consolidated financial statements

 

The full version of the condensed interim consolidated financial statements and associated management's discussion & analysis for the three and six months ended June 30, 2024 can be viewed under the Company's profile on SEDAR+ at www.sedarplus.ca and will also be made available on the Company's website at www.herbaldispatch.com.

   

Stock option grant

 

Herbal Dispatch also announces that it has granted a total of 6,100,000 stock options of the Company to certain directors, officers, employees and consultants of the Company in accordance with the Company’s stock option plan. Each option is exercisable to acquire one common share of the Company at an exercise price of $0.05 per share. The options shall vest in equal annual tranches over a period of 3 years from the date of grant and will expire on August 21, 2029. Of the stock options granted, 1,200,000 options were granted to independent directors and 1,300,000 options were granted to executive officers of the Company.

 

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 2024 and beyond, including growing sales both domestically and via export and achieving positive adjusted EBITDA in future fiscal quarters. 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 OR ITS MARKET REGULATOR (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.