Ms. Jenn Hepburn reports

EMERALD HEALTH THERAPEUTICS PROVIDES UPDATE ON FINANCING TRANSACTIONS

Emerald Health Therapeutics Inc. has provided an update on a previously announced shares-for-debt transaction.

Further to the news release dated Dec. 16, 2019, Emerald will be settling $2,816,963 of the aggregate debt owed by Emerald to Emerald Health Sciences Inc., a control person of Emerald. Emerald will settle $794,182 owed to Sciences pursuant to a previously disclosed loan agreement between the parties, as well as $2,022,781 owed to Sciences pursuant to trades payable. Emerald will satisfy the debt by issuing 9,713,666 common shares of Emerald at a deemed value of 29 cents per debt share. The debt settlement has been approved by the independent members of the board of directors of Emerald, who have determined that the fair market value of the securities being issued under the debt settlement and the consideration therefor are reasonable. The closing of the debt settlement is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals.

Sciences currently holds approximately 29,687,942 of the issued shares of Emerald, and, upon completion of the debt settlement, Sciences will hold approximately 23.1 per cent of the issued and outstanding shares of Emerald, on an undiluted basis.

As Sciences is a control person of Emerald, the debt settlement is considered to be a related-party transaction, as defined under Multilateral Instrument 61-101. Emerald intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) thereof.

About Emerald Health Therapeutics Inc.

Emerald Health Therapeutics is committed to creating new consumer experiences with recreational and wellness-oriented cannabis products. With an emphasis on innovation and production excellence, Emerald has built a platform of distinct operating assets designed to uniquely serve the Canadian marketplace and international opportunities. Its 50-per-cent-owned Pure Sunfarms (PSF) operation in British Columbia, with high-quality, affordably priced products, is in full production at its first 1.1-million-square-foot greenhouse operation, Delta 3. PSF's second 1.1-million-square-foot greenhouse, Delta 2, is planned to be in full production by the end of 2020.

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