Herbal Dispatch Announces Closing of Oversubscribed Equity Private Placement

Executive Summary

• Herbal Dispatch Inc. closed an oversubscribed non‑brokered private placement of 41,564,220 units at CAD $0.05 per unit, raising total gross proceeds of CAD $2,078,211.
• Each unit consisted of one common share and one‑half of a common‑share purchase warrant (exercisable at $0.08 for 24 months).
• Net proceeds will be used to expand inventory, accelerate export sales to high‑margin international markets, strengthen supplier relationships, and grow domestic operations, enhancing balance‑sheet strength and supporting long‑term profitability.

Key Details

• Units sold: 41,564,220 units @ CAD $0.05 each → Gross proceeds: CAD $2,078,211.
• Unit composition: 1 common share + ½ warrant (full warrant exercisable for one common share at $0.08).
• Warrant terms: Transferable; exercisable within 24 months from issuance at a price of $0.08 per common share.
• Finder’s fees: CAD $103,495 paid in cash and issuance of 599,900 warrants to qualified finders.
• Related‑party participation: Insiders (Roderick W. Law Corp., Drew Malcolm, EPC Holdings Ltd., ADH Holdings Ltd.) subscribed for 6,814,420 units (~16.39% of total). Exemptions relied upon under MI 61‑101 for valuation and minority‑shareholder approval.
• Use of proceeds:
• Purchase premium inventory to accelerate export sales into high‑margin international markets.
• Strengthen supplier relationships to ensure reliable supply chain.
• Expand domestic market presence.
• Fortify balance sheet for scalable profitability.
• Statutory hold period: Securities subject to a four‑month‑plus‑one‑day hold from issuance per Canadian securities law.

Notable Quotes

“We are thrilled with the strong investor support demonstrated by this oversubscribed private placement, which underscores confidence in our growth trajectory, especially during challenging market conditions,” – Philip Campbell, CEO of Herbal Dispatch.
“These funds will enable us to accelerate our export initiatives and strengthen our operational foundation, positioning the Company for sustained success in the domestic and export cannabis markets.” – Philip Campbell, CEO.