IN V ESTOR P RE S E N TAT I O N Q 4 2 0 1 6 TM HEALTH THERAPEUTICS ENHANCING HEALTH THROUGH CANNABIS SCIENCE T S X . V: E M H WWW.EMERALD.CARE
D I S C L A I M E R THE STATEMENTS MADE IN THIS PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS THESE RISKS AND UNCERTAINTIES RELATE TO, AMONG OTHER THINGS, CHANGES IN LAWS, REGARDING THE FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE OF EMERALD REGULATIONS AND GUIDELINES RELATING TO MEDICAL MARIHUANA AND THE POSSIBLE LEGALIZATION HEALTH THERAPEUTICS (THE “COMPANY”). FORWARD LOOKING STATEMENTS INCLUDE THE ESTIMATED OF MARIHUANA BY THE FEDERAL GOVERNMENT; CHANGES IN GOVERNMENT; CHANGES IN INCREASE IN THE COMPANY’S PRODUCTION SQUARE FOOTAGE; INCREASES IN THE COMPANY’S GOVERNMENTAL POLICY; THE CONTINUED AVAILABILITY OF CAPITAL FINANCING AND GENERAL PRODUCTION; THE LEGALIZATION OF RECREATIONAL MARIHUANA; THE SIZE OF THE MEDICAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; RELIANCE ON MANAGEMENT; THE INABILITY OF THE MARIHUANA MARKET AND THE RECREATIONAL MARIHUANA MARKET; THE COMPANY’S EXPANSION COMPANY TO EXPAND ITS CURRENT FACILITY OR OBTAIN ADDITIONAL FACILITY SPACE; FAILURE TO GOALS INCLUDING SCALABILITY, INCREASES IN SQUARE FOOTAGE, PRODUCTION AND REVENUE; THE OBTAIN APPROVAL BY HEALTH CANADA FOR THE COMPANY TO INCREASE PRODUCTION AND COMPANY’S POSITION IN THE MARIHUANA MARKET IN RESPECT OF DEMAND AND COMPETITION; THE PRODUCTION SQUARE FOOTAGE; UNFAVOURABLE PUBLICITY OR CONSUMER PERCEPTION OF THE COMPANY BECOMING A LEADING BRAND IN CANNABIS-BASED PRODUCTS; AND THE COMPANY’S NEAR MEDICAL MARIHUANA INDUSTRY; THE IMPACT OF ANY NEGATIVE SCIENTIFIC STUDIES ON THE EFFECTS TO LONG TERM GOALS INCLUDING INCREASES IN PATIENT ACQUISITION, FACILITY EXPANSION, CLINICAL OF CANNABIS; THE GROWTH IN THE MEDICAL AND RECREATIONAL MARIHUANA MARKETS BEING LESS TRIALS AND PRODUCT DEVELOPMENT AS WELL AS MARKET CAPTURE, REVENUE AND CONSOLIDATION THAN ANTICIPATED; INCREASED COMPETITION IN THE MARKET PLACE; THE COMPANY’S ABILITY TO OF THE MARIHUANA MARKET. 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 THESE FORWARD-LOOKING STATEMENTS ARE ONLY ESTIMATIONS BASED UPON THE INFORMATION ANNUAL INFORMATION FORM AND OTHER PUBLICLY FILED DISCLOSURE DOCUMENTS. UNDUE AVAILABLE TO EMERALD HEALTH THERAPEUTICS, AS OF THE DATE OF THIS PRESENTATION. EXCEPT AS RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF REQUIRED BY LAW, WE EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO PUBLICLY UPDATE OR REVISE THE DATE HEREOF. OUR FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. THUS, THE FORWARD-LOOKING STATEMENTS HEREIN INVOLVE KNOWN AND ALL FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE QUALIFIED IN THEIR ENTIRETY BY THE UNKNOWN RISKS AND UNCERTAINTIES SUCH THAT ACTUAL FUTURE OPERATIONS, OPPORTUNITIES OR FOREGOING CAUTIONARY STATEMENTS. RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING FINANCIAL PERFORMANCE MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS. STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. . 2 / 18 | Q4 2016 WWW.EMERALD.CARE
BIG 5 CANADIAN CANNABIS PUBCOS 2 DRIED & OILS DRIED & OILS LICENSE EST. PRODUCTION 100,000+ FT 2 100,000+ FT 2 SPACE BY 2018 AVERAGE VALUE $520M $52M MARKET CAP 1 AVERAGE VALUE 1 As of November 14, 2016 2 Big 5 Cannabis Pubcos: CGC, APH, ACB, MT, OGI 3 / 18 | Q4 2016 WWW.EMERALD.CARE
T R A N S F O R M AT I O N A L M I L E S T O N E S LEGALIZATION H1 2017 H2 2017 H1 2018 Recreational Products & R&D Production Expanded Sales Expansion 4 / 18 | Q4 2016 WWW.EMERALD.CARE
H I G H G R O W T H P O T E N T I A L I N H I G H G R O W T H S E C T O R LEGALIZATION $5B 2 $200M 1 RECREATIONAL MARKET MEDICAL MARKET 1 Projected market based on Health Canada Market Statistics: http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/market-marche-eng.php 2 Market value based on Deloitte LLP: “Recreational Marijuana - Insights and opportunities” - June 2016 5 / 18 | Q4 2016 WWW.EMERALD.CARE
E H T H I G H L I G H T S LEGALIZATION PRODUCTION SCALABILITY MARKET REVENUE SEED TO SALE E - COMMERCE & CULTIVATION CAPTURE EXPANSION Vertically Dried and oil Facility in Mass production Limited Initial market integrated cannabis sales. Victoria, BC competition $5.6B enterprise CURRENT EXPANSION GOALS 6 / 18 | Q4 2016 WWW.EMERALD.CARE
A D VA N C E D P R O D U C T S & B R A N D I N G S T R O N G G E N E T I C D I V E R S I T Y CBX CBD THC:CBD THC THC+ > 3% CBD CBG, CBC, THC = CBD < 17% > 17% THCV, CBDV THC THC EMERALD RANGE CANNABIS OIL EASY FOR CONSUMERS DRIED CANNABIS & PHYSICIANS 7 / 18 | Q4 2016 WWW.EMERALD.CARE
EXPA N S ION TA R G E T S LEGALIZATION PHASE 1 PHASE 2 PHASE 3 50,000 FT 2 100,000 FT 2 1 million + FT 2 100,000+ KG 5,000 KG 10,000 KG production / year production / year production / year $500M+ potential $25M potential $50M potential sales* sales* sales* *Potential sales based on sale price of $5/g 8 / 18 | Q4 2016 WWW.EMERALD.CARE
LOW - CO ST A DVA NTAGE AGRI - BUSINESS EXPERIENCED BC UTILITY FRIENDLY TRACK RECORD LABOUR POOL ADVANTAGE CLIMATE Optimal growing 3rd lowest Management with Leading team with environment electricity cost in proven success in extensive history in Canada scalable agriculture cannabis production 9 / 18 | Q4 2016 WWW.EMERALD.CARE
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � TA R G E T P R O D U C T I O N V S D E M A N D LEGALIZATION S U P P L Y medical expansion recreational branding CURRENT UPCOMING PHASE 1 PHASE 2 PHASE 3 10 / 18 | Q4 2016 WWW.EMERALD.CARE
E X P E R I E N C E D M A N A G E M E N T T E A M Bin Huang, PhD, MBA Sandra Pratt, CPA, CA President & CEO CFO 20+ years in accounting & finance: 20+ years in life sciences including 15 years as CEO Angiotech Pharmaceuticals Traviss Graham Frey Garabagi, PhD VP Production VP R&D and QAP 15+ years in cannabis production, 10+ years R&D in plant molecular processing, and product development. genetics and medical technologies 11 / 18 | Q4 2016 WWW.EMERALD.CARE
THE E M E RA LD A DVA N TAG E LEGALIZATION KEY LEADERSHIP CLINICAL SUPERIOR STAKEHOLDER EXPERIENCE TRIALS BRAND Emerald Health Clinical expertise & Become the Life sciences, drug Sciences networks to expand leading brand in development, clinical patient base cannabis-based testing, product products approvals and distribution 12 / 18 | Q4 2016 WWW.EMERALD.CARE
B O A R D O F D I R E C T O R S Avtar Dhillon, MD Jim Heppell, BSc, LLB Chairman and former CEO of Director and former CEO of Inovio Pharmaceuticals, Inc. Sophiris Bio Inc. (NASDAQ:SPHS) and previous President (NASDAQ:INO) and Board Member of and Director of BC Advantage Funds several life sciences companies Bob Rai, BSc Punit Dhillon, BA Chairman and CEO of CEO of Oncosec (NASDAQ:ONCS) Canadian Pacific Global Pharmaceuticals Former Vice President of Finance and Director of Vanc Pharmaceutica Inc. Operations at Inovio Pharmaceuticals (TSX:NPH) and 20+ years of pharmacy experience 13 / 18 | Q4 2016 WWW.EMERALD.CARE
MEM B E RS H IP I N CA N N A BI S CA N ADA EHB member of Cannabis Canada Association (CCA) • Avtar Dhillon – Board Member • Bin Huang – Company Representative • Maheep Dhillon – Regulations Committee Member CCA provides industry feedback and recommendations in-person to Health Canada and Government Active voice on regulatory changes, patient advocacy and industry logistics www.cann-can.ca WWW.EMERALD.CARE 14 / 18 | Q4 2016
M O V I N G F O R W A R D MID TO NEAR TO LONG TERM MID TERM Patient acquisition Legalization Facility expansion Market capture Clinical trials Mass revenue Product development Consolidation 15 / 18 | Q4 2016 WWW.EMERALD.CARE
C O M PA R A B L E S Canopy Aphria Inc. Mettrum Aurora Organigram Supreme $1.29B $553M $274M $517M $327M $204M $52M Market Cap 1 Fully Licensed Scalability to meet demand $7.5M $3.0M $4.3M $1.5M $7.5M $2.0M $440K Quarterly Expense 2 Quarterly Revenue 2 $7.0M $4.4M $4.2M $219K $894K $0 $100K 1 As at November 14, 2016 2 Figures based on most recently published interim financials for each company as at November 14, 2016 16 / 18 | Q4 2016 WWW.EMERALD.CARE
I N V E S T M E N T H I G H L I G H T S TM EXPERTISE GROWTH SCALABILITY 17 / 18 | Q4 2016 WWW.EMERALD.CARE
T H A N K Y O U ! T O L E A R N M O R E , P L E A S E C O N TA C T : S A N D Y P R A T T C F O T : + 1 8 O O 7 5 7 3 5 3 6 E : I N V E S T @ E M E R A L D . C A R E 18 / 18 | Q4 2016 WWW.EMERALD.CARE
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