The TSX Venture Exchange has accepted for filing a binding term sheet dated April 13, 2018, between the company and Emerald Health Bioceuticals Inc. (EHB), Emerald Health Naturals Inc. (Naturals), GAB Innovations Inc. and Dr. Gaetano Morello. Pursuant to the terms of the term sheet, the company will invest $5-million to acquire 5.1 million shares in Naturals, being 51 per cent of the shares of Naturals. EHB will receive 4.9 million shares of Naturals in exchange for the grant to Naturals of the exclusive Canada distribution rights with respect to non-cannabis endocannabinoid products. The transaction is non-arm's length due to the involvement of EHB, which is 71 per cent owned by Emerald Health Sciences Inc., an entity that holds approximately 30.6 per cent of the company's issued and outstanding shares.

Please refer to the company's news releases dated April 17, 2018, Nov. 19, 2018, and Jan. 10, 2019, for further details.