Mr. Rob Hill reports

EMERALD HEALTH THERAPEUTICS COMPLETES ACQUISITION OF LICENSED DEALER NORTHERN VINE CANADA

Emerald Health Therapeutics Inc. has completed the purchase of the remaining shares of Northern Vine Canada Inc. from Abattis Bioceuticals Corp. for $2-million in cash and 1,093,938 common shares of Emerald Health Therapeutics (with a deemed value of $4-million, based on the trailing 30-day volume-weight average price of Emerald Health Therapeutics shares as at July 19, 2018). This transaction, announced on July 19, 2018, increases Emerald Health Therapeutics' ownership of Northern Vine from 65 per cent to 100 per cent. Northern Vine is a licensed dealer (LD) under the provisions of the Canadian Controlled Drugs and Substances Act.

The dealer licence allows Emerald Health Therapeutics to participate in the growing market for cannabis analytical testing, which Emerald Health Therapeutics expects to grow in conjunction with increasing cannabis production volumes in Canada. Northern Vine will operate independently of Emerald Health Therapeutics and is committed to serving all clients, including licensed producers and patient-growers. Legalization of cannabis for medical purposes and the upcoming legalization of cannabis for recreational purposes is expected to drive demand for analytical testing services to assess potency and concentration of toxic materials.

This acquisition also allows Emerald Health Therapeutics to leverage Northern Vine's dealer licence in order to advance research plans to develop cannabis formulations supporting new products for both recreational purposes and to treat a broad spectrum of human conditions and diseases.

The agreement includes a milestone payment in the form of common shares of Emerald Health Therapeutics valued at $4-million if Northern Vine and/or Emerald Health Therapeutics receive(s) gross revenue of $10-million from the sale of products or services introduced by Abattis Bioceuticals.

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. Emerald Health Therapeutics is preparing to serve the fully legalized Canadian adult-use cannabis market starting Oct. 17, 2018. Emerald Health Therapeutics owns 50 per cent of Pure Sunfarms, which is converting a licensed existing 1.1-million-square-foot (25 acres) greenhouse in Delta, B.C., and is in commercial production. Emerald Health Therapeutics also wholly owns Agro-Biotech, a Montreal-based licensed cannabis grower with a 75,000-square-foot indoor facility and is planning to add a 500,000-square-foot wholly owned greenhouse in Metro Vancouver.

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