Emerald Health Therapeutics Completes Acquisition of Licensed Dealer Northern Vine Canada

Source:  Emerald Health Therapeutics, Inc. 8/15/18

Emerald Health Therapeutics, Inc. (TSXV:EMH; OTCQX:EMHTF) (Emerald) has completed the purchase of the remaining shares of Northern Vine Canada Inc. (Northern Vine) from Abattis Bioceuticals Corp. (Abattis) (CSE: ATT; OTC: ATTBF) for $2 million in cash and 1,093,938 common shares of Emerald (with a deemed value of $4 million, based on the trailing 30 day VWAP of Emerald shares as of July 19, 2018). This transaction, announced on July 19^th, increases Emerald’s ownership of Northern Vine from 65% to 100%. Northern Vine is a Licensed Dealer (LD) under the provisions of the Canadian Controlled Drugs and Substances Act.

The dealer license allows Emerald to participate in the growing market for cannabis analytical testing, which Emerald expects to grow in conjunction with increasing cannabis production volumes in Canada. Northern Vine will operate independently of Emerald and is committed to serving all clients, including Licensed Producers and patient-growers. Legalization of cannabis for medical purposes and the upcoming legalization of cannabis for recreational purposes is expected to drive demand for analytical testing services to assess potency and concentration of toxic materials.

This acquisition also allows Emerald to leverage Northern Vine’s dealer license to advance research plans to develop cannabis formulations supporting new products for both recreational purposes and to treat a broad spectrum of human conditions and diseases.

The Agreement includes a milestone payment in the form of common shares of Emerald valued at $4 million if Northern Vine and/or Emerald receive gross revenue of $10 million from the sale of products or services introduced by Abattis.

About Emerald Health Therapeutics, Inc.

Emerald Health Therapeutics (TSXV: EMH; OTCQX: EMHTF; Frankfurt: TBD) is a Licensed Producer under Canada’s Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. Emerald is preparing to serve the fully legalized Canadian adult-use cannabis market starting October 17, 2018. Emerald owns 50% of Pure Sunfarms, which is converting a licensed existing 1.1 million square foot greenhouse in Delta, BC and is now in commercial production. It owns Agro-Biotech, a Québec-based licensed cannabis grower with a 75,000 square foot indoor facility and is planning to add a 500,000 square foot greenhouse in Metro Vancouver. Emerald’s team is highly experienced in life sciences, product development, large-scale agri-business, and marketing, and is focused on developing value-added cannabis-based products with potential wellness and medical benefits. Emerald is part of the Emerald Health group, which is broadly focused on developing pharmaceutical, botanical, and nutraceutical products that may provide wellness and medical benefits by interacting with the human body’s endocannabinoid system.