Dr. Avtar Dhillon reports

EMERALD HEALTH THERAPEUTICS SECURES PROPRIETARY EXTRACTION TECHNOLOGY ANDA EXTRACTION CAPABILITIES IN AGREEMENT WITH INDENA

Emerald Health Therapeutics Inc. has entered into a licence with Indena SpA of Milan, Italy, bearing certain exclusivity rights in Canada to use Indena's cannabidiol (CBD) extraction technology, and contract manufacturing services for CBD extraction. In addition, Emerald has obtained exclusive use of Indena's proprietary Phytosome technology for the purpose of developing novel cannabinoid-based products with superior utility, subject to a minimum volume agreement.

This collaboration leverages Indena's decades-long global presence in the plant extraction industry and botanical experience in phytochemical research. Indena is the world's leading company in the identification, development and production of plant-derived active ingredients for the pharmaceutical, health food and personal care industries. It is adapting an existing proprietary extraction process to facilitate hemp extraction and will exclusively provide Emerald in Canada with this highly optimized process for extracting and isolating CBD to manufacture cannabinoid-based products. With multiple international large-scale extraction facilities, Indena will be the exclusive third party manufacturing supplier of CBD for Emerald. Emerald will use this CBD in its production of certain product lines.

Emerald and Indena have also established a research collaboration to assess the use of Indena's Phytosome technology in combination with various cannabinoids. The agreement provides Emerald with exclusive access to certain of Indena's scientifically validated, commercially available Phytosome formulations and plant-based technology that is designed to enhance solubility of compounds that are usually poorly absorbed by the body, such as cannabinoids. For Emerald, evaluating and securing superior technologies like Phytosome is an important aspect of its objective to develop differentiated and effective cannabinoid-based products to improve human health.

"Emerald is one of the few licensed producers in Canada focused on applying proprietary innovation to improve the medical applications of cannabinoids, which is fully aligned with Indena's scientific approach to phytochemical research," said Stefano Togni, business development and licensing director of Indena. "We believe that both companies' approaches to quality and innovation will create an exciting partnership that will add value to the industry and better serve patients and consumers who look for excellence in their products and predictive health outcomes."

"In my many years as a practicing naturopathic physician, Indena has been the gold standard in plant extraction in the natural health products industry," said Dr. Gaetano Morello, chair of Emerald's scientific advisory board and chief executive officer of Emerald Health Naturals. "By gaining access to their technology, know-how and expertise, Emerald is propelling itself as a leader in the innovation of next generation CBD-based products."

"Reinventing processes and replicating existing expertise does not make sense to us when we can work with the best. We welcome Indena's decision to work closely with our team," added Dr. Avtar Dhillon, president and executive chairman of Emerald Health Therapeutics. "We aim to bring together unbeatable global expertise, technology and infrastructure to innovate and commercialize value-added cannabinoid-based products, and we will do this with both internal resources and industry-leading partners.

"Indena is one of the oldest and most established extraction businesses in the world. They have served international pharmaceutical companies with natural anti-cancer ingredients. They are leaders in nutraceutical products. With multiple extraction-related deals announced, our comprehensive and cohesive international strategy for cannabis and hemp extraction is unfolding. We look forward to impactful cannabinoid product development advancements in 2019."

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-acre) greenhouse for cannabis cultivation in the Lower Mainland and its Verdelite operation in Quebec is completing the buildout of its 75,000-square-foot indoor cultivation facility. Commercial production is expanding in both facilities. Emerald 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 (CBD).

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