Mr. Rob Hill reports

EMERALD HEALTH THERAPEUTICS ANNOUNCES CLOSING OF $25 MILLION CONVERTIBLE DEBENTURE UNIT FINANCING

Emerald Health Therapeutics Inc. has closed its prospectus offering to certain Canadian institutional accredited investors announced on Aug. 28, 2019. Pursuant to the offering, the company issued 2,500 secured convertible debenture units at a price of $10,000 per convertible debenture unit for gross proceeds of $25-million.

Each convertible debenture unit comprises one 5.0 per cent secured convertible debenture of the company in the principal amount of $10,000 and 5,000 common share purchases warrants of the company. The convertible debentures have a maturity date of 24 months from the date hereof and bear interest (at the option of the company payable in cash or, pursuant to TSX Venture Exchange rules and subject to certain limitations on a holder's ownership levels, in common shares of the company) from the date hereof at 5.0 per cent per annum, accrued and payable semi-annually on June 30 and Dec. 31 of each year. The convertible debentures include certain covenants relating to the business of the company.

Subject to certain limitations on a holder's ownership levels, the convertible debentures are convertible, subject to certain restrictions and at the option of the holder, into common shares at any time prior to the close of business on the last business day immediately preceding the maturity date. The convertible debentures have a conversion price of $2 per common share. If, at any time prior to the maturity date, the volume-weighted average trading price of the common shares on the TSX Venture Exchange is greater than $3.50 for 10 consecutive trading days, the company may force the conversion of the principal amount of the then-outstanding principal amount owing pursuant to the convertible debentures at the conversion price, provided the company gives 30 days of notice of such conversion to the holder.

Subject to certain limitations on a holder's ownership levels, each warrant is exercisable to purchase one common share at an exercise price of $2 per share for a period of 24 months from the date hereof. If, at any time prior to the expiry date of the warrants, the volume-weighted average trading price of the common shares on the TSX-V is greater than $3.50 for 10 consecutive trading days, the company may deliver a notice to the holder of warrants accelerating the expiry date of the warrants to the date that is 30 days following the date of such notice.

The company has used a portion of the net proceeds of the offering to repay the outstanding loan to Emerald Health Sciences Inc. and intends to use the remainder for working capital.

The convertible debenture units were offered by way of a shelf prospectus supplement dated Aug. 30, 2019, filed in all of the provinces of Canada pursuant to National Instrument 44-101 (Short Form Prospectus Distributions) and National Instrument 44-102 (Shelf Distributions).

About Emerald Health Therapeutics Inc.

Emerald Health 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. The capacity of each greenhouse is estimated to exceed 75,000 kilograms of cannabis annually. Emerald's Verdelite operation in Quebec is completing the buildout of its 88,000-square-foot indoor cultivation facility and is scaling up production.

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