INVESTOR PRESENTATION ENHANCING HEALTH THROUGH CANNABIS SCIENCE WWW.EMERALDHEALTH.CA TSX.V:EMH
TSX.V:EMH Disclaimer THE STATEMENTS MADE IN THIS PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS REGARDING THE FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE OF EMERALD HEALTH THERAPEUTICS (THE COMPANY ). FORWARD LOOKING STATEMENTS INCLUDE THE ESTIMATED INCREASE IN THE COMPANY S PRODUCTION SQUARE FOOTAGE; INCREASES IN THE COMPANY S PRODUCTION; THE LEGALIZATION OF RECREATIONAL MARIHUANA; THE SIZE OF THE MEDICAL MARIHUANA MARKET AND THE RECREATIONAL MARIHUANA MARKET; THE COMPANY S EXPANSION GOALS INCLUDING SCALABILITY, INCREASES IN SQUARE FOOTAGE, PRODUCTION AND REVENUE; THE COMPANY S POSITION IN THE MARIHUANA MARKET IN RESPECT OF DEMAND AND COMPETITION; THE COMPANY BECOMING A LEADING BRAND IN CANNABIS-BASED PRODUCTS; AND THE COMPANY S NEAR TO LONG TERM GOALS INCLUDING INCREASES IN PATIENT ACQUISITION, FACILITY EXPANSION, CLINICAL TRIALS AND PRODUCT DEVELOPMENT AS WELL AS MARKET CAPTURE, REVENUE AND CONSOLIDATION OF THE MARIHUANA MARKET. THESE FORWARD-LOOKING STATEMENTS ARE ONLY ESTIMATIONS BASED UPON THE INFORMATION AVAILABLE TO EMERALD HEALTH THERAPEUTICS, AS OF THE DATE OF THIS PRESENTATION. EXCEPT AS REQUIRED BY LAW, WE EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO PUBLICLY UPDATE OR REVISE OUR FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. THUS, THE FORWARD-LOOKING STATEMENTS HEREIN INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES SUCH THAT ACTUAL FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS. THESE RISKS AND UNCERTAINTIES RELATE TO, AMONG OTHER THINGS, CHANGES IN LAWS, REGULATIONS AND GUIDELINES RELATING TO MEDICAL MARIHUANA AND THE POSSIBLE LEGALIZATION OF MARIHUANA BY THE FEDERAL GOVERNMENT; CHANGES IN GOVERNMENT; CHANGES IN GOVERNMENTAL POLICY; THE CONTINUED AVAILABILITY OF CAPITAL FINANCING AND GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; RELIANCE ON MANAGEMENT; THE INABILITY OF THE COMPANY TO EXPAND ITS CURRENT FACILITY OR OBTAIN ADDITIONAL FACILITY SPACE; FAILURE TO OBTAIN APPROVAL BY HEALTH CANADA FOR THE COMPANY TO INCREASE PRODUCTION AND PRODUCTION SQUARE FOOTAGE; UNFAVOURABLE PUBLICITY OR CONSUMER PERCEPTION OF THE MEDICAL MARIHUANA INDUSTRY; THE IMPACT OF ANY NEGATIVE SCIENTIFIC STUDIES ON THE EFFECTS OF CANNABIS; THE GROWTH IN THE MEDICAL AND RECREATIONAL MARIHUANA MARKETS BEING LESS THAN ANTICIPATED; INCREASED COMPETITION IN THE MARKET PLACE; THE COMPANY S ABILITY TO MEET ITS NEAR AND LONG-TERM GOALS; AND THE COMPANY S ABILITY TO RETAIN A COMPETITIVE ADVANTAGE IF MARIHUANA IS LEGALIZED AS WELL AS THE RISK FACTORS SET OUT IN THE COMPANY S ANNUAL INFORMATION FORM AND OTHER PUBLICLY FILED DISCLOSURE DOCUMENTS. UNDUE RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. ALL FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE QUALIFIED IN THEIR ENTIRETY BY THE FOREGOING CAUTIONARY STATEMENTS. RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. WWW.EMERALDHEALTH.CA 2 / 14
TSX.V:EMH Emerald Highlights Canadian federal license to grow and sell medical cannabis & oils LICENSED PRODUCER Production & sale of dry & oil products LARGE-SCALE CAPACITY Scaling to 100,000 SF facility on 32 acres of land UNIQUE PRODUCTS Genetics, extraction & innovation R&D for higher margins than dried PROVEN LEADERSHIP 100 years of combined experience in pharma and agri-business WWW.EMERALDHEALTH.CA 3 / 14
TSX.V:EMH Emerald Health Therapeutics (EMH.V) Emerald is a great value proposition BIG 5 CANNABIS PUBCOS 2 Grow & sell LP Demand driven LICENSE PRODUCTION Grow & sell LP Large facilities $100M MARKET CAP 1 $773M AVERAGE VALUE 1 As of Feb 14, 2017 2 Big 5 Cannabis Pubcos: WEED, APH, ACB, EMC, OGI WWW.EMERALDHEALTH.CA 4 / 14
TSX.V:EMH 2017 Rapid Growth & Scale Up 2017 value drivers Increase patients & sales Scale up extraction Complete 100,000 SF grow facility Expand proprietary genetics portfolio Initiate several clinical studies WWW.EMERALDHEALTH.CA 5 / 14
High Margin Focus TSX.V:EMH Experienced team to create high margin products 1. GENETIC DIVERSITY very large diverse library of strains 2. GMP COMPLIANCE grow, extraction, & processing to pharma & nutrac. standards 3. MEDICINAL PRODUCTS backed by clinical studies 4. TRUSTED BRAND reliable, ethical, & non-compromising quality 5. MANAGEMENT been there and done it WWW.EMERALDHEALTH.CA 6 / 14
TSX.V:EMH Emerald Product Profile Genetic diversity» product diversity» value creation CBX CBD THC:CBD THC THC+ DRIED CANNABIS CANNABIS OIL GENETIC DIVERSITY» PRODUCT DIVERSITY WWW.EMERALDHEALTH.CA 7 / 14
TSX.V:EMH High Margin Product Development The art and science behind value chain drivers CLINICALLY DEMONSTRATED UTILITY PROPRIETARY DOSAGE, DELIVERY & DIVERSITY VALUE ADD QUALITY LOW COST CULTIVATION HIGHLY COMPETITIVE WWW.EMERALDHEALTH.CA 8 / 14
TSX.V:EMH Expansion Capability 32 acre footprint for expansion 2017 BUILD UP TO 1 MILLION SF ON DEMAND $10M 50,000 FT 2 CAPEX = 10,000KG PER ANNUM 1 50,000 FT 2 1 Industry CAPEX on incrementali increase in capacity WWW.EMERALDHEALTH.CA 9 / 14
Expansion Expertise TSX.V:EMH Ability to scale up fast and efficiently 1. MODULAR - purpose built expansion 50,000 SF at a time 2. INVESTMENT timely $10m in CAPEX = 10,000 KG 3. EXPERIENCED - trusted relationship and SOPs with Health Canada 4. SPEED starting material from current facility ensures fast-track to full production 5. SALES customers currently waitlisted for supply of Emerald grown products 6. CAPABILITY large scale drug development, construction and greenhouse grow expertise 7. CAPITAL proven history of raising capital WWW.EMERALDHEALTH.CA 10 / 14
TSX.V:EMH Capitalization Great structure, no debt & value investor 78m Shares Outstanding 32m Retail Float 46m Shares Held by Single Strategic Inside Investor 20m O&W Management, Emerald Health Sciences & Recent Offering $15m Recent Cash Position 750k Three Month Average Volume $1.35 Recent Share Price WWW.EMERALDHEALTH.CA 11 / 14
TSX.V:EMH TSX.V:EMH Experienced Management Team Proven experience in the areas that matter Bin Huang, PhD, MBA President & CEO Sandra Pratt, CPA, CA CFO 20+ years in life sciences including 15 years as CEO Traviss Graham VP Production Avtar Dhillon, MD Executive Chairman Chairman of 5 public life science companies, led turnaround of NASDAQ:INO from $10m to $1b company 20+ years in accounting & finance Angiotech Pharmaceuticals Frey Garabagi, PhD VP R&D and QAP 15+ years in cannabis production, processing, and product development. 10+ years R&D in plant molecular genetics and medical technologies WWW.EMERALDHEALTH.CA 12 / 14
TSX.V:EMH TSX.V:EMH Board Of Directors Raised over $500m to-date, clinical trials world wide Avtar Dhillon, MD Chairman and former CEO of Inovio Pharmaceuticals, Inc. Jim Heppell, BSc, LLB Director and former CEO of Sophiris Bio Inc. (NASDAQ:INO) and Board Member of several life sciences companies (NASDAQ:SPHS) and previous President and Director of BC Advantage Funds Bob Rai, BSc Chairman and CEO of Canadian Pacific Global Pharmaceuticals Punit Dhillon, BA CEO of Oncosec (NASDAQ:ONCS) Director of Vanc Pharmaceutica Inc. (TSX:NPH) and 20+ years of pharmacy experience Former Vice President of Finance and Operations at Inovio Pharmaceuticals WWW.EMERALDHEALTH.CA 13 / 14
TSX.V:EMH THANK YOU TO LEARN MORE PLEASE CONTACT : Avtar Dhillon, MD EXECUTIVE CHAIRMAN T. +1 858 361 4499 E. INVEST@EMERALD.CARE WWW.EMERALDHEALTH.CA 14 / 14