Cautionary Note Regarding Forward-Looking Statements TO THE EXTENT - PowerPoint PPT Presentation

Cautionary Note Regarding Forward-Looking Statements TO THE EXTENT STATEMENTS CONTAINED IN THE FOLLOWING PRESENTATION ARE NOT DESCRIPTIONS OF HISTORICAL FACTS REGARDING THE COMPANY, THEY SHOULD BE CONSIDERED “FORWARD-LOOKING STATEMENTS,” AS DESCRIBED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, THAT REFLECT MANAGEMENT’S CURRENT BELIEFS AND EXPECTATIONS. YOU CAN IDENTIFY FORWARD-LOOKING STATEMENTS BY WORDS SUCH AS “ANTICIPATE,” “BELIEVE,” “COULD,” “ESTIMATE,” “EXPECT,” “FORECAST,” “GOAL,” “HOPE,” “HYPOTHESIS,” “INTEND,” “MAY,” “PLAN,” “POTENTIAL,” “PREDICT,” “PROJECT,” “SHOULD,” “STRATEGY,” “WILL,” “WOULD,” OR THE NEGATIVE OF THOSE TERMS, AND SIMILAR EXPRESSIONS THAT CONVEY UNCERTAINTY OF FUTURE EVENTS OR OUTCOMES. FORWARD-LOOKING STATEMENTS CONTAINED IN THESE PRESENTATIONS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS REGARDING: (I) THE SUCCESS AND TIMING OF OUR PRODUCT DEVELOPMENT ACTIVITIES AND CLINICAL TRIALS; (II) OUR ABILITY TO DEVELOP OUR PRODUCT CANDIDATES; (III) OUR PLANS TO RESEARCH, DISCOVER, EVALUATE AND DEVELOP ADDITIONAL POTENTIAL PRODUCT, TECHNOLOGY AND BUSINESS CANDIDATES AND OPPORTUNITIES; (IV) OUR ABILITY TO DEVELOP AND MANUFACTURE OUR PRODUCT CANDIDATES AND TO IMPROVE THE MANUFACTURING PROCESS; (V) OUR ABILITY TO ATTRACT AND RETAIN KEY SCIENTIFIC OR MANAGEMENT PERSONNEL; (VI) THE ANTICIPATED TIMING OF CLINICAL DATA AVAILABILITY; (VII) OUR ABILITY TO MEET OUR MILESTONES; (VIII) OUR EXPECTATIONS REGARDING OUR ABILITY TO OBTAIN AND MAINTAIN INTELLECTUAL PROPERTY PROTECTION; AND (IX) THE IMPACT OF CAPITAL MARKET CONDITIONS ON US. FORWARD-LOOKING STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN FACTORS, RISKS AND UNCERTAINTIES THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD LOOKING STATEMENTS. UNDUE RELIANCE SHOULD NOT BE PLACED ON FORWARD-LOOKING STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD-LOOKING STATEMENTS. THE COMPANY’S INVESTIGATIONAL DRUG PRODUCTS HAVE NOT BEEN APPROVED OR CLEARED BY THE FDA. W W W . E M E R A L D P H A R M A . L I F E 2 �

Emerald Health Pharmaceuticals A clinical-stage clinical-stage pharmaceutical company developing � first-in-class first-in-class drug candidates � to treat critical diseases with unmet medical need unmet medical need � Our technology has a unique multi-pronged mechanism of action unique multi-pronged mechanism of action not seen with other molecules, not seen with other molecules, addressing validated targets validated targets for neurodegenerative, autoimmune, fibrotic & inflammatory diseases � Preclinical studies demonstrate disease modification disease modification with the potential to reverse the progression of diseases which currently have no cure and cause significant mortality � W W W . E M E R A L D P H A R M A . L I F E 3 �

Emerald Health Pharmaceuticals: Key Highlights Unique 
 Strong Strong IP & Clinical Stage Mechanism of Team Significant Market Development Action Experienced Experienced New Chemical New Chemical Lead product Lead product Broad patent Broad patent biotech/pharma biotech/pharma Entities (NCEs) Entities (NCEs) � candidate to enter candidate to enter protection with a protection with a executives and executives and with the potential with the potential Phase 2 human Phase 2 human US$39B market US$39B market globally- globally- for disease for disease trials in Q4 2019 trials in Q4 2019 � opportunity in the opportunity in the recognized clinical recognized clinical modification in modification in for multiple for multiple first 4 targeted first 4 targeted and scientific and scientific diseases with no diseases with no � sclerosis & sclerosis & diseases � diseases advisors � advisors current cure � current cure scleroderma scleroderma � E m e r a l d P h a r m a . L I F E 4 �

Development Roadmap NOTE: In the scientific literature: EHP-101 = VCE-004.8 EHP-102 = VCE-003.2 W W W . E M E R A L D P H A R M A . L I F E 5 �

Emerald Health Pharmaceuticals Emerald Health Pharmaceuticals Status: Private � Status: Private Headquarters: San Diego, CA, USA � Headquarters: San Diego, CA, USA R&D: Córdoba, Spain & Collingwood, VIC Australia R&D: Córdoba, Spain � Focus ocused ed on on dev devel elopi oping ng pat patent ented ed synt nthet hetic c cannabinoi cannabi noid-der derived ed dr drug ug candi candidat dates es to tre treat d t diseases w with th unm unmet et medi edical cal need need E m e r a l d P h a r m a . L I F E 6 �

� The Technology: Patented NCEs Derived from CBD & CBG • CBD & CBG have multiple positive physiologic effects through interaction with the the endocannabinoid system (ECS) � endocannabinoid system (ECS) • Research indicates they are: � - Anti-inflammatory � - Antioxidative � - Neuroprotective � - Analgesic � - Anti-infective � - Non-psychoactive � W W W . E M E R A L D P H A R M A . L I F E 7 �

The ECS Exists Throughout the Body Distribution of CB1 Receptors Receptors Psychotropic 
 CB1 Health benefits? CB2 TRPV1 Non-psychotropic FAAH GPR55 Health benefits MALG PPARs TRPA1 W W W . E M E R A L D P H A R M A . L I F E 8 �

� � � Our Scientific Approach To Improve on To Im prove on the the positive positive health effects of CBD and CBG health effects of CBD and CBG � by modifying them to create enhanced molecules � by modifying them to create enhanced molecules • AUGMENT CBD & CBG receptor targeting � • FOCUS on receptors that can treat diseases with � unmet medical need � • DEVELOP composition of matter patented cannabinoid new chemical entities (NCEs) � • CREATE a strong IP portfolio � W W W . E M E R A L D P H A R M A . L I F E 9 �

� � � � Patents 14 patented CBD derivatives � 14 granted, 18 pending, covering 25 molecules Molecules in our NCE Library • Composition of matter patents � 11 patented CBG derivatives � • Protection to 2037 � • Potential for multiple � products and indications � W W W . E M E R A L D P H A R M A . L I F E 10 �

PPAR γ Rational Drug Design: New Chemical Entity (NCE) CB 2 EHP’s 
 CB2 TRPV1 Cannnabinoid Library VCE-004.8 VCE-004.8 a CBD derivative FAAH GPR55 PPAR γ MALG DRUG DISCOVERY PPARs SCREENING TRPA1 PLATFORM FOR ECS TARGETS VCE-003.2 A CBG derivative W W W . E M E R A L D P H A R M A . L I F E 11 �

� � � � NCE: A Non-Controlled Substance Cannabinoid The U.S. Drug Enforcement The U.S. Drug Enforcement � Administration (DEA) Administration (DEA) � Unlike CBD Unlike CBD � (a controlled substance): (a controlled substance): � • VCE-004.8 (the active ingredient in EHP-101) is not a controlled substance � • Indicative of complete difference between our molecule and CBD � W W W . E M E R A L D P H A R M A . L I F E 12 �

Provides Many Therapeutic Opportunities Neurodegenerative Inflammatory Auto-Immune Parkinson’s disease Huntington’s disease Ulcerative Colitis / Crohn’s Metabolic Cancer Fibrotic Diabetes W W W . E M E R A L D P H A R M A . L I F E 13 �

Development Roadmap NOTE: In the scientific literature: EHP-101 = VCE-004.8 EHP-102 = VCE-003.2 W W W . E M E R A L D P H A R M A . L I F E 14 �

� � � Lead Product Candidate: EHP-101 CBD Cannabidiol Cannabidiol (CBD) (CBD) derivative derivative � CBD BD: : � • Does not bind to CB1 (non-psychotropic) � • Safe, anti-inflammatory, neuroprotective, EHP-101 analgesic, anti-proliferative � • Helps improve MS symptoms � GOAL: maintain these attributes and improve on the ability to treat diseases instead of just address symptoms W W W . E M E R A L D P H A R M A . L I F E 15 �

EHP-101: Why Multiple Sclerosis? Main symptoms of � Multiple Sclerosis Chronic inflammatory, degenerative, demyelinating CNS disorder 
 • Our molecule targets receptors associated with MS � • Current medications are most effective only during the � inflammatory phase; less potent as the disease transitions � to a neurodegenerative process � • No effective disease-modifying drugs for progressive forms � • No therapies appear to re-myelinate damaged neurons � W W W . E M E R A L D P H A R M A . L I F E 16 �

EHP-101 Can Potentially Re-Myelinate Nerves Damaged by MS Normal Multiple Sclerosis W W W . E M E R A L D P H A R M A . L I F E 17 �

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 � EHP-101: Designed for Mechanism of Action Reduces 
 CBD Our strategy: � neuroinflammation PPAR γ� To improve on CBD’s known � positive effects by affecting � Increases Neuroprotection validated targets in MS: � validated targets in MS: � CB2 � - PPAR γ EHP 101 Improves neuron - CB2 survival 
 and repair - HIF HIF 1 � HIF 2 � Potential for PPAR γ : Peroxisome proliferator-activated receptor gamma � Remyelination CB2: Cannabinoid receptor Type 2 � HIF: Hypoxia inducible factor � W W W . E M E R A L D P H A R M A . L I F E 18 �

EHP-101: E ffi cacy Demonstrated in Multiple Sclerosis Control (untreated): Demonstrated efficacy in Demonstrated efficacy in MS MS models models � Treated: • Significant improvement in � clinical signs � Dose response with efficacy at 5 mg/kg • Stops neuroinflammation and demyelination � • Remyelinates neurons � W W W . E M E R A L D P H A R M A . L I F E 19 �