THE MOST HATED TRADE ON THE BOARD JUST GOT PAID

Cannabis stocks have been a graveyard for years. Anyone who touched them got their face ripped off. Investors learned to spit on the sector, fund managers blacklisted it, and the financial press treated it like a punchline. That's exactly the kind of setup we love.

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Because last Thursday, the Trump DOJ did something that changes the entire fucking game. Acting Attorney General Todd Blanche signed an order moving FDA-approved and state-licensed medical marijuana from Schedule I to Schedule III — effective immediately. The full rescheduling hearing wraps up by July 15, 2026. The drug that's been classified next to heroin and LSD since 1970 is now a cousin of Tylenol with codeine.

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This is the catalyst the entire industry has been waiting on for a decade. And the small-cap that's already pumping export revenue and just hit positive EBITDA nobody is talking about? Herbal Dispatch — CSE: HERB / OTCQB: LUFFF.

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Why Rescheduling Is Such a Big Deal

Schedule I means no accepted medical use, maximum criminal liability, and the worst tax code in America. Cannabis operators have been bleeding under IRS Section 280E for years — a Nixon-era rule that prevents them from deducting normal business expenses like rent and payroll. Effective tax rates of 70 to 90 percent are common. That's not a typo.

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Schedule III kills 280E. Companies suddenly get to deduct their costs like every other business on the planet. We're talking billions in cash flow unlocked across the US industry overnight. Banking access loosens. M&A gets a green light. The capital that's been quarantined out of the sector for a decade starts flowing back in.

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The Schedule III move applies federally to FDA and state-licensed product right now. The full administrative hearing for blanket rescheduling kicks off June 29 and concludes by July 15. Anti-rescheduling groups like SAM are lawyering up to block it, but the Trump executive order from December 2025 lit the fuse and the DOJ just struck the match. This is happening.

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When a sector gets a once-in-a-generation policy tailwind, the question isn't whether money flows in — it's which names catch the bid first. The big US MSOs will rip on the headlines. But the real asymmetric trade is in the smaller names with real revenue, real export channels, and a market cap so small they can move 5x before anyone notices.

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ENTER HERBAL DISPATCH

Most people have never heard of HERB and that's the entire point. Herbal Dispatch is a Vancouver-based cannabis e-commerce and distribution platform. Translation: they're the digital marketplace that connects Canadian licensed producers with both medical patients and recreational buyers, and they ship internationally to medical markets that are growing like weeds. They run a high-volume, capital-light model. They don't grow it. They don't dispense it. They move it.

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SHOW ME THE NUMBERS

The Q4 2025 financials dropped on April 24. Here's the line-by-line. Q4 2025 gross sales of $6.2 million — up 115% year over year. Net revenue of $4.1 million, up 79%. Adjusted EBITDA went positive.

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For the full year 2025: gross sales of $16.5 million, up 37% YoY. Net revenue of $12.1 million. Gross margin expanded to 22.7% from 20.1%. That's the third consecutive year of double-digit growth.

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The October 2025 private placement raised $2.1 million and was oversubscribed. Translation: institutional investors fought to get in. The kicker? In January 2026 they shipped 298 kilograms of medical cannabis to Germany. Germany tripled cannabis imports last year. Australia is up 73%. The international medical market is exploding and HERB has the licenses and infrastructure to feed it.

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The Founder and The Chess Board

CEO Philip Campbell has been quietly building this thing while the cannabis industry burned around him. The Honourable Herb Dhaliwal — former federal Minister of National Revenue, Natural Resources, and Fisheries — just took over as Chairman of the Board. That's not a ceremonial board seat. That's a guy with deep regulatory contacts joining a small-cap cannabis company at the exact moment global medical markets are opening up.

Their 2026 strategy hits the obvious tailwinds: scaling medical cannabis sales to veterans through the Royal Canadian Legion and Veterans Affairs Canada, expanding their international export footprint, and growing their direct-to-consumer e-commerce platform. Boring stuff that prints cash.

While the big US MSOs are still trying to dig out of debt and dilution, HERB has been growing top line, expanding margins, and just flipped to positive adjusted EBITDA. They're not promising profitability "next year." They just delivered it.

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WHY VHLA LIKES THIS ONE

The setup is exactly the kind of trade we hunt for.

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Hated sector — check. Cannabis is the most under-owned, most beaten-up, most retail-traumatized sector in the market. Almost nobody is positioned for the upside.

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Real catalyst — check. Trump just signed the executive order. The DOJ just rescheduled. The hearing wraps up in July. The single biggest US tax burden on the cannabis industry is on its way out.

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Real numbers — check. HERB isn't a story stock with no revenue. They just printed $16.5 million in gross sales, hit positive adjusted EBITDA, and grew 115% in their most recent quarter.

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International leverage — check. While US operators wait on Washington, HERB is already shipping kilos to Germany and serving exports to multiple jurisdictions.

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Tiny float — check. Sub-$10 million market cap territory is where 5-baggers and 10-baggers come from when sentiment flips. We've seen this movie before in uranium, in lithium, in nuclear. Cannabis is next.

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This is a high-risk, high-reward microcap. It can rip and it can also chop. Position accordingly. But when the puck is heading to the corner, you skate to the corner. Not where everyone else is standing.

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**Disclaimer:** This content is for entertainment and informational purposes only and should not be taken as financial advice (NFA). VHLA Media is not a registered investment advisor, broker-dealer, or licensed financial professional. We may own shares in Herbal Dispatch and we may buy or sell at any time without notice. This is not a sponsored piece and we have not recieved compensation. Always do your own research and consult a licensed professional before making investment decisions.

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