Dr. Avtar Dhillon reports

EMERALD HEALTH THERAPEUTICS APPLAUDS THE GOVERNMENT OF CANADA FOR THE RELEASE OF FINAL INGESTIBLE REGULATIONS

Emerald Health Therapeutics Inc. is pleased that the government of Canada has released the final regulatory framework for ingestibles and edibles.

"The clarity of the final regulatory framework provides is important for Emerald in bringing our new product categories such as vape pens, ingestibles and edibles to market," said Allan Rewak, vice-president, communications and stakeholder relations. "We applaud the government for providing this certainty today."

The regulatory framework announced by Health Canada prohibits product forms that could be appealing to children and youth, prohibits the combination of alcohol or nicotine with cannabis, and restricts production of infused cannabis products to dedicated licensed cannabis facilities approved by Health Canada.

"We see today's announcement as a positive step forward and a validation of our plan," said Dr. Avtar Dhillon, Emerald's executive chairman and president. "In anticipation of the restrictions placed on production for infused cannabis products, we worked with our strategic partner, the Factors Group, to fully segment their Kelowna plant into a separate processing facility. As a result of this early action, I am pleased to say that the Factors Group is working to complete construction in the near term, with the final evidence package to be submitted to Health Canada shortly thereafter."

Emerald's partnership with the Factors Group is anticipated to greatly assist the company in overcoming processing bottlenecks in the Canadian marketplace for extraction and ingestible processing due to the restrictions on allowable production facilities. Once fully operational, the Factors Group will be capable of converting up to one million kilograms of biomass into value-added products, beginning with soft gels.

The regulations announced on June 14, 2019, will come into force on Oct. 17, 2019, which, when combined with the statutory 60-day notification period for new product forms, will allow Emerald to introduce new ingestible product categories to market in the December-January time frame.

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 licensed and fully planted in the first of its two 1.1-million-square-foot greenhouses. Emerald's Verdelite operation in Saint Eustache, Que., is completing the buildout of its 88,000-square-foot indoor cultivation facility and is scaling up production. Emerald has contracted for approximately 1,200 acres of hemp in 2019 to 2022 with the objective of extracting low-cost cannabidiol.

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