Herbal Dispatch's B.C. direct delivery increases

Executive Summary

• Herbal Dispatch Inc. reports a surge in order volumes and market share growth driven by the B.C. General Employees' Union (BCGEU) strike, which has disrupted the B.C. Liquor Distribution Branch's (LDB) central cannabis distribution operations.
• The company is capitalizing on the disruption by leveraging its direct-to-retailer delivery platform, having previously held a 35% share of the B.C. direct delivery market.
• Management anticipates that strengthened retailer partnerships formed during the strike will lead to long-term loyalty, sustained revenue growth, and increased shareholder value.

Key Details

• Strike Impact: The BCGEU strike began on September 22, 2025, halting wholesale shipments from the B.C. Liquor Distribution Branch (LDB), the province's primary liquor and cannabis distribution hub.
• Market Disruption: The LDB typically distributes approximately $50 million in cannabis to B.C. dispensaries monthly; the closure of distribution centers has forced retailers to seek alternative supply chains.
• Operational Surge: Herbal Dispatch has experienced a "substantial surge" in order volumes as retailers utilize its direct delivery platform to maintain inventory.
• Market Share: Prior to the strike, Herbal Dispatch held a 35% share of British Columbia's direct delivery market; the company is currently achieving greater market penetration.
• Strategic Outlook: The company expects the partnerships forged during the disruption to foster long-term retailer loyalty, enhancing market leadership and delivering increased value through expanded revenue streams.

Notable Quotes

• "This increased reliance underscores Herbal Dispatch's critical role in supporting the retail ecosystem during this disruption."
• "Herbal Dispatch's scalable e-commerce platform and strong relationships with local producers enable seamless, efficient direct-to-retailer fulfilment, ensuring dispensaries remain well stocked and operational."