Mr. Rob Hill reports

EMERALD JOINT VENTURE RECEIVES LICENSES FROM HEALTH CANADA TO SELL PROPRIETARY PRODUCTS SUPPORTING THE ENDOCANNABINOID SYSTEM

Emerald Health Therapeutics Inc.'s joint venture, Emerald Health Naturals (EHN), has received product licences and natural product numbers (NPNs) from Health Canada to sell its award-winning Endo product line of endocannabinoid-supporting nutritional products in Canada. The Endo product line has been designed to impact stress, anxiety, restless sleep, pain and other conditions using non-cannabis ingredients. EHN intends to launch the Endo product line over-the-counter in Canadian natural health product, grocery and pharmacy stores by mid-2019.

"Our Endo product line was developed by internationally recognized natural health product experts and is unique in the natural health care marketplace. We are very excited to be able to offer our Endo products to Canadian consumers to support their endocannabinoid systems and improve aspects of their health," said Dr. Gaetano Morello, chief executive officer of EHN. "We are leveraging our key strategic relationships and working hard on the marketing, manufacturing and logistical steps in order to launch the Endo line by mid-2019."

The Endo product line was developed by Emerald's joint venture partner, San Diego-based Emerald Health Bioceuticals Inc. (EHB), and its scientific advisers. Over the last year, EHB has secured multiple distribution and sales channels in the United States and internationally for the Endo product line, ranging from small independent natural health product retailers to nationwide grocery store chains and Amazon.com. EHN, which is owned 51 per cent by Emerald and 49 per cent by EHB, will have exclusive Canadian distribution rights to the Endo products.

These cannabis-free nutritional supplements feature PhytoCann-complex, a proprietary formulation designed to support the body's endocannabinoid system, which plays a 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. Endo Brain was recently awarded a prestigious 2018 SupplySide consumer packaged goods editor's choice award for brain health, building on its NEXTY editor's choice best new supplement award in the natural products industry in 2017.

"We have the unique opportunity to brand Emerald through EHN's offering of the Endo product line through a number of valuable sales channels that are frequently visited by cannabis users but which cannot currently sell cannabis products," said Dr. Avtar Dhillon, executive chairman and president of Emerald. "In the event that CBD and other non-psychoactive cannabinoid products are allowed to be sold in these channels in the future, Emerald will be well positioned to add its cannabinoid compounds to the Endo product line and leverage its early marketing advantage. Emerald's vision is to enhance human health through cannabis science. The creation of EHN and the launch of the Endo product line in Canada are key steps in Emerald's strategy to achieve this goal."

As announced in the company's press release dated Nov. 22, 2018, the company has obtained conditional approval of the TSX Venture Exchange for the formation of the EHN joint venture. The parties are in the process of finalizing definitive documentation with respect to EHN. Formation of EHN is conditional upon final regulatory approval and settlement of definitive documentation.

About the endocannabinoid system

The endocannabinoid system (ECS) is a biological system with a vital role in regulating human health and disease. A lack of balance in the endocannabinoid system is likely to have adverse consequences in a number of human health conditions. The ECS is activated by endocannabinoids produced naturally in the body, but also by cannabis or non-cannabis plant ingredients that mimic the actions of cannabinoids produced in the body. All products in the Endo product line contain Phyto-Cann complex, which has been formulated by leading nutritional and cannabinoid scientists with non-cannabis herbal and botanical cannabinoids designed to favourably impact the ECS.

About Emerald Health Therapeutics Inc.

Emerald Health Therapeutics is a Canadian licensed producer of cannabis. Its 50-per-cent-owned Pure Sunfarms joint venture in British Columbia is completing the conversion of its 1.1-million-square-foot (25 acres) greenhouse in the Lower Mainland to cultivate cannabis and its Agro-Biotech operation in Quebec is currently operating out of its 75,000-square-foot indoor cannabis cultivation facility. Commercial production is expanding in both facilities. In addition, Emerald has secured over 500 acres of hemp harvest in 2018 and has contracted for approximately 1,000 acres in 2019 to 2022, with the objective of extracting low-cost cannabidiol out of its hemp harvest.

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