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Emerald Health Pharmaceuticals Important Notice Emerald Health Pharmaceuticals Important Notice Emerald Health Pharmaceuticals Inc. (the Company) is currently engaged in an ongoing offering under Regulation A+ (Regulation A+) under the Securities Act of 1933, as amended. The offering will be made only by means of an offering circular. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No money or other consideration is being solicited at this time, and if sent in response to these materials, it will not be accepted. No securities may be sold, and no offer to buy securities can be accepted and no part of the purchase price can be received for an offering under Regulation A+ except pursuant to an Offering Circular qualified by the U. S. Securities and Exchange Commission, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person's indication of interest in a Regulation A+ offering is non-binding and involves no obligation or commitment of any kind. Our most recent Offering Circular and periodic reports are available via this URL: https://emeraldpharma.life/sec-filings-2019/ 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 SUCHAS “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. P.2 Emerald Health Pharmaceuticals • A clinical-stage biotechnology company developing first-in-class new chemical entities to treat diseases with unmet medical need • Our technology has a unique multi-pronged mechanism of action, addressing validated targets for neurodegenerative, autoimmune, fibrotic & inflammatory diseases • Preclinical studies demonstrate disease modification with the potential to reverse the progression of diseases which currently have no cure and cause significant morbidity and mortality • Phase I completed successfully on our lead product candidate - Phase II initiation underway WWW.EMERALDPHARMA.LIFE 3 Emerald Health Pharmaceuticals Status: Private Headquarters: San Diego, CA, USA R&D: Córdoba, Spain Focused on developing patented synthetic cannabinoid-derived drug candidates to treat diseases with unmet medical need WWW.EMERALDPHARMA.LIFE 4 Emerald Health Pharmaceuticals: Key Highlights Unique Strong IP & Strong Mechanism of Clinical Stage Significant Market Team Action Development New Chemical Broad patent Phase 1 completed Experienced Entities (NCEs) protection with a on lead product biotech/pharma with the potential US$39B market candidate executives and for disease opportunity in the demonstrating globally- modification in first 4 targeted tolerability, safety, recognized clinical diseases with no diseases and dosing and scientific current cure flexibility advisors WWW.EMERALDPHARMA.LIFE 5 Not for Distribution Development Roadmap NOTE: In the scientific literature: EHP-101 = VCE-004.8 EHP-102 = VCE-003.2 WWW.EMERALDPHARMA.LIFE 6 Market Opportunity: ~$39B in the First Four Target Diseases 1Global Multiple Sclerosis Drugs Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2017 To 2025 Research and Markets Report 2Parkinson's Disease Therapeutics Market Global Industry Analysis Size, Share, Growth ,Trends, and Forecasts, 2017 To 2025 Transparency Market Research Report 3Scleroderma Diagnostics and Therapeutics Market Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2024 Transparency Market Research Report 4Opportunity Analyzer: Huntington's Disease Opportunity Analysis and Forecast to 2024 Research and Markets Report WWW.EMERALDPHARMA.LIFE 7 The Technology: Patented NCEs Derived from CBD & CBG • Cannabidiol (CBD) & Cannabigerol (CBG) have multiple positive physiologic effects through interaction with the endocannabinoid system (ECS) • Research indicates they are: - Anti-inflammatory - Antioxidative - Neuroprotective - Analgesic - Anti-infective - Non-psychoactive Source: https://carebydoctors.com/ailments-corresponding-cannabinoids/ WWW.EMERALDPHARMA.LIFE 8 The ECS Exists Throughout the Body Distribution of CB1 Receptors Receptors Health benefits; CB1 Psychoactive effects CB2 TRPV1 Health benefits; GPR55 FAAH No psychoactive effects PPARs MALG TRPA1 WWW.EMERALDPHARMA.LIFE 9 Our Scientific and Pharmaceutical Approach To improve on the positive health effects of CBD and CBG by modifying them to create enhanced new chemical entities • EXPANDED receptor targeting • FOCUSED on receptors that can treat diseases with unmet medical need • DEVELOP composition of matter patented new chemical entities (NCEs) • CREATE a strong IP portfolio WWW.EMERALDPHARMA.LIFE 10 Cannabinoid Science: Rational Drug Design Chemical modifications of the Synthetic CBD molecule create new targets and receptor binding New, patented molecules • Our drug discovery platform CB2 TRPV1 The Result: focuses on targets related • Totally synthetic NCEs to the ECS without binding GPR55 FAAH to CB1 receptors • Non-psychotropic • Targeted receptor activity • The goal: to affect targets PPARs MALG validated for various diseases TRPA1 • Potential for disease modification with unmet medical need • Composition of matter patents WWW.EMERALDPHARMA.LIFE 11 Patents 14 patented CBD derivatives 16 granted, 22 pending, covering 25 molecules Molecules in our NCE Library • Composition of matter and method of use patents • Broad protection in the US, EU 11 patented CBG derivatives and many countries worldwide • Protection to 2039 • Potential for multiple products and indications WWW.EMERALDPHARMA.LIFE 12 The Unique Convergence of Cannabinoids, Science & Biology Cannabinoids Science Other New Proprietary Cannabinoids Molecules CBG The EHP-101 EHP EHP-102 (VCE-004.8) Platform (VCE-003.2) 14 patented 11 patented CBD derivatives CBG derivatives Patented CBD Derivatives (“4-series”) Patented CBG Derivatives (“3-series”) EHP-102 EHP-101 Biology WWW.EMERALDPHARMA.LIFE 13 Provides Many Therapeutics Opportunities Neurodegenerative Inflammatory Auto-Immune Lupus Parkinson’s disease Huntington’s disease Ulcerative Colitis / Crohn’s Metabolic Cancer Fibrotic Diabetes Systemic Sclerosis (Scleroderma) WWW.EMERALDPHARMA.LIFE 14 Lead Product Candidate: EHP-101 CBD A patented CBD derivative (NCE) • Oral formulation • Unique multi-pronged mechanism of action • Preclinical proof-of-concept established EHP-101 • IND-enabling studies completed • Phase I completed • Phase II initiation underway WWW.EMERALDPHARMA.LIFE 15 A Cannabinoid that is Not a Controlled Substance The U.S. Drug Enforcement Administration (DEA) has determined that: • VCE-004.8 (the active ingredient in EHP-101) is not a controlled substance WWW.EMERALDPHARMA.LIFE 16 EHP-101: Designed for Targeted Mechanism of Action Our strategy: Reduces neuroinflammation To improve on CBD’s PPARγ known positive effects Increases by creating a unique Neuroprotection new molecule that affects CB2 validated targets in MS: EHP-101 Improves neuron - PPARγ survival and repair - CB2 - HIF HIF Promotes Remyelination PPARγ: Peroxisome proliferator-activated receptor gamma CB2: Cannabinoid receptor Type 2 HIF: Hypoxia inducible factor WWW.EMERALDPHARMA.LIFE 17 EHP-101: Efficacy Demonstrated in Multiple Sclerosis Efficacious in 4 validated MS models: EAE 1. Experimental Autoimmune Encephalomyelitis (EAE) 2. Theiler’s Murine Encephalomyelitis Virus (TMEV) 3. Cuprizone 4. Modified Cuprizone TMEV Studies demonstrate: •
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