Mr. Rob Hill reports

EMERALD HEALTH THERAPEUTICS TO LAUNCH AWARD-WINNING ENDOCANNABINOID BASED PRODUCTS INTO CANADIAN GROCERY, NATURAL HEALTH PRODUCT, AND PHARMACY STORES

Emerald Health Therapeutics Inc. has launched a multipronged program to market and sell a proprietary, award-winning non-cannabis line of endocannabinoid-supporting nutritional products in Canadian grocery, natural health product and pharmacy stores. Emerald Health has entered into a 51:49 joint venture, to be called Emerald Health Naturals, with San Diego-based Emerald Health Bioceuticals Inc. The JV has secured exclusive Canadian marketing and sales rights to Emerald Health Bioceuticals' unique nutritional supplements, which use non-cannabis, non-psychoactive plant-based ingredients to provide potentially beneficial support to the body's endocannabinoid system.

In this initiative, the JV has agreed to acquire the assets of GAB Innovations and has granted non-exclusive subdistribution rights to Vanc Pharmaceuticals. Both GAB and Vanc have established networks and a history of sales success in the natural health product and pharmacy channels. Dr. Gaetano Morello, ND, the founder of GAB, has been appointed chief executive officer of the joint venture.

Market research commissioned by Emerald Health Therapeutics identified that approximately six of 10 current legal cannabis users also use natural health products. This strong consumer overlap between the two markets creates a unique opportunity for Emerald Health Therapeutics to establish its health brand and begin sales of endocannabinoid-supporting products in natural health product channels. These channels are not expected to be authorized to sell cannabis under the anticipated Canadian federal cannabis regulations for recreational use expected in 2018. If these channels are approved in the future, EHT would be well positioned to leverage its brand and channel presence to introduce its cannabis-based products into these channels.

"As familiar and trusted sources of health products, we believe that pharmacy, natural health product and grocery stores will become important channels for products that beneficially affect the endocannabinoid system," said Chris Wagner, CEO of Emerald Health Therapeutics. "This acclaimed non-cannabis product line gives us first-mover advantage in these channels and positioning if they are approved to sell cannabis-based products in the future. These channels would also be ideal for new products we are developing around advancements in formulation, delivery and dosing."

"We were recently honoured with the best new supplement award at one of the largest natural product trade shows, a testament to the quality and innovativeness of our product line," noted Jade Beutler, CEO of Emerald Health Bioceuticals. "We look forward to introducing these natural health products to the Canadian marketplace, which along with other legal cannabis markets is showing tremendous appetite for non-psychoactive products that may provide wellness benefits."

EHT is leveraging multiple relationships to launch this initiative:

• Formed a joint venture with San Diego-based Emerald Health Bioceuticals. Emerald Health Therapeutics will receive 51 per cent of the shares of the JV in exchange for an investment of $5-million. Emerald Health Bioceuticals will receive 49 per cent of the shares of the JV in exchange for granting the joint venture exclusive Canadian distribution rights with respect to its product line.

Emerald Health Bioceuticals has developed and launched its over-the-counter product line of cannabis-free nutritional supplements in the United States. The products feature PhytoCann-Complex, Emerald Health Bioceuticals' proprietary formulation designed to support the body's endocannabinoid system and its central role in the orchestration, maintenance and balance of health and well-being. The products include Endo Sleep, Endo Inflame, Endo Brain, Endo Bliss and Endo Calm.

Emerald Health Bioceuticals' management and scientific advisory board (SAB) comprise experts in natural health medicine, product development and marketing. They have decades of experience working with active ingredients, desired formulations, delivery and dosage forms, and have access to source ingredients and industrial-scale, pharmaceutical quality manufacturing. For example, the SAB includes Michael T. Murray, ND, a leading authority on natural medicine, and Giovanni Appendino, PhD, a thought leader who has researched cannabis and cannabinoids for over 15 years. Ms. Beutler and the Emerald Health Bioceuticals leadership team have built significant, commercially successful natural health product brands.

Emerald Health Bioceuticals is a 70-per-cent-owned subsidiary of Emerald Health Sciences Inc., which also owns approximately 37 per cent of the issued and outstanding shares of Emerald Health Therapeutics. There will be no change in the share ownership of Emerald Health Therapeutics by Sciences as a result of the joint venture. The joint venture with Emerald Health Bioceuticals was approved by the independent directors of Emerald Health Therapeutics.

• Appointed Dr. Morello as CEO of the joint venture. Dr. Morello is a clinician at the complex chronic disease program at B.C. Women's Hospital in Vancouver and a private practice in West Vancouver. He treats complex chronic diseases including fibromyalgia, chronic fatigue syndrome, myalgic encephalomyelitis and chronic lyme disease. He has seen first-hand not only the benefits of authorized cannabis on this population but also other plant extracts targeting the endocannabinoid system. He serves on the quality assurance committee for the College of Naturopathic Physicians of British Columbia and other health and medical panels. Dr. Morello has a BSc in cell biology/nutrition from the University of British Columbia and a doctorate in naturopathic medicine from Bastyr University.
• The JV has acquired certain assets of GAB, a company founded by Dr. Morello that has been a distributor of nutritional supplements into natural health channels since 1996. GAB has represented some of North America's leading manufacturers of natural health supplements including Enzymatic Therapy, a leading manufacturer of natural supplements; Thorne Research, a leading physician brand in both Canada and the United States; as well as Terry Naturally, Wisdom Sweet Leaf and others. GAB has represented hundreds of SKUs to a network of over 2,000 health food and pharmacy stores across the country. GAB recently sold its proprietary Sealicious omega-3 product line to Natural Factors, one of Canada's largest producers of natural supplements.
• Granted Vanc Pharmaceuticals Inc. a non-exclusive right to distribute the joint venture's endocannabinoid-supporting products to Canadian pharmacies. Vanc has a well-established sales team and key relationships with Canada's largest pharmaceutical wholesalers as well as pharmacy and grocery chains. Vanc will concurrently issue to EHN 3,030,303 warrants to purchase shares of Vanc.

"We believe the sales potential for cannabis products in pharmacies is significant and providing these products through the pharmacy channel would be a natural fit as pharmacists play a key role in promoting public safety through education and awareness. We will take a lead role to develop this channel with Emerald Health Naturals, starting with these cannabis-free endocannabinoid-supporting products," said Bob Rai, CEO and director of Vanc.

"Our mission is to broadly realize the medicinal benefits of a range of products that interact with the endocannabinoid system, which plays a vital role in modulating key functions of the human body. Emerald Health Bioceuticals and its internationally recognized advisers have created a unique product line that we believe can assist the endocannabinoid system in its role," said Dr. Morello, CEO of EHN. "As a practitioner of natural medicine for over 26 years, and having assessed hundreds of patients using legally authorized cannabis, I believe Canada's steps to legalize recreational cannabis will be beneficial for patients with many medical conditions. I am excited about the potential of EHT's cannabis and non-cannabis products, and to take on a role to help realize the medicinal and commercial potential of these products." Completion of the transactions set out in this press release is subject to the approval of the TSX Venture Exchange.

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About the endocannabinoid system (ECS)

The ECS is a biological system with a vital role in regulating human health and disease. A lack of endocannabinoid tone may have adverse consequences in various physiological processes. The ECS is activated by endocannabinoids produced naturally in the body, but also by cannabis or non-cannabis plant-based cannabinoids that mimic those produced in the body. Phyto-Cann Complex is formulated with non-cannabis herbal and botanical cannabinoids that may favourably impact the ECS, along with health and wellness.

About Emerald Health Therapeutics Inc.

Emerald Health Therapeutics is a licensed producer under Canada's Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. It is adding a 500,000-square-foot greenhouse in Metro Vancouver to serve the anticipated legal Canadian adult-use cannabis market starting in 2018. Emerald owns 50 per cent of a joint venture with Village Farms International Inc. that is converting an existing 1.1 million square ft greenhouse in Delta, B.C., to grow cannabis. Emerald's team is highly experienced in life sciences, product development and large-scale agribusiness.

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