Document:

Exhibit 4.6 

 

EMERALD
HEALTH THERAPEUTICS, INC.

 

Annual General Meeting 

to be held on May 31, 2018

 

Notice of Annual General Meeting

and

Information Circular

 

May 2, 2018

Mailed: May 9, 2018

 

    

     

    

 

EMERALD HEALTH THERAPEUTICS, INC. 

4420 West Saanich Road, PO Box 24076

Victoria, British Columbia

V8Z 6N6

 

NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS

 

NOTICE IS HEREBY GIVEN that an annual general
meeting (the “Meeting”) of the shareholders of Emerald Health Therapeutics, Inc. (the “Company”)
will be held at Suite 2600, Oceanic Plaza, 1066 West Hastings Street, Vancouver, British Columbia V6E 3X1 on Thursday, May 31,
2018 at 1:00 p.m. (Vancouver, British Columbia time).

 

At the Meeting, the shareholders will receive
the financial statements for the year ended December 31, 2017, together with the auditor’s report thereon, and will consider
resolutions to:

 

		1.	elect directors for the ensuing year;

 

		2.	appoint Deloitte LLP, Chartered Accountants, as auditor
of the Company for the ensuing year and authorize the directors to determine the remuneration to be paid to the auditor;

 

		3.	approve the Company’s amended and restated omnibus
incentive plan, approved by the Company’s board of directors on September 18, 2017; and

 

		4.	transact such other business as may properly be put before
the Meeting.

 

All shareholders of record at the close
of business on Wednesday, April 25, 2018 are entitled to attend and vote at the Meeting in person or by proxy. The Board of Directors
of the Company (the “Board”) requests that all shareholders who will not be attending the Meeting in person
read, date and sign the accompanying form of proxy and deliver it to Computershare Investor Services Inc. (“Computershare”).
If a shareholder does not deliver a proxy to Computershare, Attention: Proxy Department, 100 University Avenue, 8th Floor, Toronto,
Ontario, M5J 2Y1, on or before 1:00 p.m. (Vancouver, British Columbia time) on Tuesday, May 29, 2018 (or prior to 48 hours,
excluding Saturdays, Sundays and holidays, before any adjournment of the meeting at which the proxy is to be used) then the shareholder
will not be entitled to vote at the Meeting by proxy.

 

An information circular and a form of proxy accompany this notice.

 

DATED at Vancouver, British Columbia, the 2nd day
of May, 2018.

 

ON BEHALF OF THE BOARD

 

	“Dr. Avtar Dhillon”	 
	 	 
	Dr. Avtar Dhillon 	 
	Executive Chairman	 

 

    

     

    

 

EMERALD HEALTH THERAPEUTICS, INC. 

4420 West Saanich Road, PO Box 24076

Victoria, British Columbia

V8Z 6N6

 

INFORMATION CIRCULAR

 

(as at May 2, 2018 except as otherwise indicated)

 

SOLICITATION OF PROXIES

 

This information circular (the “Circular”)
is provided in connection with the solicitation of proxies by management (“Management”) of Emerald Health Therapeutics,
Inc. (the “Company”). The form of proxy which accompanies this Circular (the “Proxy”) is
for use at the annual general meeting of the shareholders of the Company to be held on Thursday, May 31, 2018 (the “Meeting”),
at the time and place set out in the accompanying notice of Meeting (the “Notice of Meeting”). The Company will
bear the cost of this solicitation. The solicitation will be made by mail, but may also be made by telephone. Only shareholders
of record at the close of business on April 25, 2018 will be entitled to vote at the Meeting.

 

APPOINTMENT AND REVOCATION OF PROXY

 

The persons named in the Proxy are directors
and/or officers of the Company. A registered shareholder who wishes to appoint some other person to serve as their representative
at the Meeting may do so by striking out the printed names and inserting the desired person’s name in the blank space provided.
The completed Proxy should be delivered to Computershare Investor Services Inc. (“Computershare”), 100 University
Avenue, 9th Floor, Toronto, Ontario, M5J 2Y1, by 1:00 p.m. (local time in Vancouver, British Columbia) on Tuesday, May 29,
2017, or prior to 48 hours (excluding Saturdays, Sundays and holidays) before any adjournment of the Meeting at which the Proxy
is to be used.

 

The Proxy may be revoked by:

 

		(a)	signing a proxy with a later date and delivering it at the time and place noted above;

 

		(b)	signing and dating a written notice of revocation and delivering it to Computershare, or by transmitting
a revocation by telephonic or electronic means, to Computershare, at any time up to and including the last business day preceding
the day of the Meeting, or any adjournment of it, at which the Proxy is to be used, or delivering a written notice of revocation
and delivering it to the Chair of the Meeting on the day of the Meeting or adjournment of it; or

 

		(c)	attending the Meeting or any adjournment of the Meeting and registering with the scrutineer as
a shareholder present in person.

 

Provisions Relating to Voting of Proxies

 

The shares represented by Proxy
in the form provided to shareholders will be voted or withheld from voting by the designated holder in accordance with the
direction of the registered shareholder appointing him. If there is no direction by the registered shareholder, those shares
will be voted for all proposals set out in the Proxy and for the election of directors and the appointment of the auditors as
set out in this Circular. The Proxy gives the person named in it the discretion to vote as such person sees fit on any
amendments or variations to matters identified in the Notice of Meeting, or any other matters which may properly come before
the Meeting. At the time of printing of this Circular, Management knows of no other matters which may come before the Meeting
other than those referred to in the Notice of Meeting.

 

    

     

    

 

Advice to Beneficial Holders of Common Shares

 

The information set forth in this section
is of significant importance to many shareholders, as a substantial number of shareholders do not hold common shares of the Company
(the “Common Shares”) in their own name. Shareholders who hold their Common Shares through their brokers, intermediaries,
trustees or other persons, or who otherwise do not hold their Common Shares in their own name (referred to herein as “Beneficial
Shareholders”) should note that only proxies deposited by shareholders who appear on the records maintained by the Company’s
registrar and transfer agent as registered holders of Common Shares will be recognized and acted upon at the Meeting. If Common
Shares are listed in an account statement provided to a Beneficial Shareholder by a broker, then those Common Shares will, in all
likelihood, not be registered in the shareholder’s name. Such Common Shares will more likely be registered under the name
of the shareholder’s broker or an agent of that broker. In Canada, the vast majority of such shares are registered under
the name of CDS & Co. (the registration name for CDS Clearing and Depository Services Inc., which acts as nominee for many
Canadian brokerage firms). In the United States, the vast majority of such Common Shares are registered under the name of Cede
& Co., the registration name for The Depository Trust Company, which acts as nominee for many United States brokerage firms.
Common Shares held by brokers (or their agents or nominees) on behalf of a broker’s client can only be voted or withheld
at the direction of the Beneficial Shareholder. Without specific instructions, brokers and their agents and nominees are prohibited
from voting shares for the broker’s clients. Therefore, each Beneficial Shareholder should ensure that voting instructions
are communicated to the appropriate person well in advance of the Meeting.

 

Existing regulatory policy requires brokers
and other intermediaries to seek voting instructions from Beneficial Shareholders in advance of shareholder meetings. The various
brokers and other intermediaries have their own mailing procedures and provide their own return instructions to clients, which
should be carefully followed by Beneficial Shareholders in order to ensure that their Common Shares are voted at the Meeting. The
form of instrument of proxy supplied to a Beneficial Shareholder by its broker (or the agent of the broker) is substantially similar
to the instrument of proxy provided directly to registered shareholders by the Company. However, its purpose is limited to instructing
the registered shareholder (i.e., the broker or agent of the broker) how to vote on behalf of the Beneficial Shareholder. The vast
majority of brokers now delegate responsibility for obtaining instructions from clients to Broadridge Financial Solutions Inc.
(“Broadridge”) in Canada. Broadridge typically prepares a machine-readable voting instruction form (“VIF”),
mails those forms to Beneficial Shareholders and asks Beneficial Shareholders to return the VIFs to Broadridge, or otherwise communicate
voting instructions to Broadridge (by way of the internet or telephone, for example). Broadridge then tabulates the results of
all instructions received and provides appropriate instructions respecting the voting of shares to be represented at the Meeting.
A Beneficial Shareholder who receives a Broadridge VIF cannot use that form to vote Common Shares directly at the Meeting. The
VIFs must be returned to Broadridge (or instructions respecting the voting of Common Shares must otherwise be communicated to Broadridge)
well in advance of the Meeting in order to have the Common Shares voted. If you have any questions respecting the voting of Common
Shares held through a broker or other intermediary, please contact that broker or other intermediary for assistance.

 

    	- 2 -

     

    

 

The Notice of Meeting, Circular, Proxy
and VIF, as applicable, are being provided to both registered shareholders and Beneficial Shareholders. Beneficial Shareholders
fall into two categories - those who object to their identity being known to the issuers of securities which they own (“OBOs”)
and those who do not object to their identity being made known to the issuers of the securities which they own (“NOBOs”).
Subject to the provisions of National Instrument 54-101 - Communication with Beneficial Owners of Securities of a Reporting
Issuer (“NI 54-101”), issuers may request and obtain a list of their NOBOs from intermediaries directly
or via their transfer agent and may obtain and use the NOBO list for the distribution of proxy-related materials directly (not
via Broadridge) to such NOBOs. If you are a Beneficial Shareholder and the Company or its agent has sent these materials directly
to you, your name, address and information about your holdings of Common Shares have been obtained in accordance with applicable
securities regulatory requirements from the intermediary holding the Common Shares on your behalf.

 

Pursuant to the provisions of NI 54-101,
the Company is providing the Notice of Meeting, Circular and Proxy or VIF, as applicable, to both registered owners of the securities
and non-registered owners of the securities. If you are a non-registered owner, and the Company or its agent has sent these materials
directly to you, your name and address and information about your holdings of securities, have been obtained in accordance with
applicable securities regulatory requirements from the intermediary holding on your behalf. By choosing to send these materials
to you directly, the Company (and not the intermediary holding Common Shares on your behalf) has assumed responsibility for (i)
delivering these materials to you, and (ii) executing your proper voting instructions. Please return your voting instructions as
specified in the VIF. As a result, if you are a non-registered owner of the securities, you can expect to receive a scannable VIF
from Computershare. Please complete and return the VIF to Computershare in the envelope provided or by facsimile. In addition,
telephone voting and internet voting instructions can be found on the VIF. Computershare will tabulate the results of the VIFs
received from the Company’s NOBOs and will provide appropriate instructions at the Meeting with respect to the Common Shares
represented by the VIFs they receive.

 

The Company’s OBOs can expect to
be contacted by Broadridge or their brokers or their broker’s agents as set out above. The Company does not intend to pay
for intermediaries to deliver the Notice of Meeting, Circular and VIF to OBOs and accordingly, if the OBO’s intermediary
does not assume the costs of delivery of those documents in the event that the OBO wishes to receive them, the OBO may not receive
the documentation.

 

Although a Beneficial Shareholder may not
be recognized directly at the Meeting for the purposes of voting Common Shares registered in the name of his broker, a Beneficial
Shareholder may attend the Meeting as proxyholder for the registered shareholder and vote the Common Shares in that capacity. NI
54-101 allows a Beneficial Shareholder who is a NOBO to submit to the Company or an applicable intermediary any document in writing
that requests that the NOBO or a nominee of the NOBO be appointed as the NOBO’s proxyholder. If such a request is received,
the Company or an intermediary, as applicable, must arrange, without expenses to the NOBO, to appoint such NOBO or its nominee
as a proxyholder and to deposit that proxy within the time specified in this Circular, provided that the Company or the intermediary
receives such written instructions from the NOBO at least one business day prior to the time by which proxies are to be submitted
at the Meeting, with the result that such a written request must be received by 1:00 p.m. (Vancouver, British Columbia time)
on the day which is at least three business days prior to the Meeting. A Beneficial Shareholder who wishes to attend the Meeting
and to vote their Common Shares as proxyholder for the registered shareholder, should enter their own name in the blank space on
the VIF or such other document in writing that requests that the NOBO or a nominee of the NOBO be appointed as proxyholder and
return the same to their broker (or the broker’s agent) in accordance with the instructions provided by such broker.

 

    	- 3 -

     

    

 

All references to shareholders
in the Notice of Meeting, Circular and the accompanying Proxy are to registered shareholders of the Company as at April 25, 2018
as set forth on the list of registered shareholders of the Company as maintained by the registrar and transfer agent of the Company,
Computershare, unless specifically stated otherwise.

 

FINANCIAL STATEMENTS

 

The audited financial statements
of the Company for the year ended December 31, 2017, together with the auditor’s report on those statements and the related
management discussion and analysis, will be presented to the shareholders at the Meeting.

 

VOTING SECURITIES AND PRINCIPAL HOLDERS
OF VOTING SECURITIES

 

As at the date of the accompanying
Notice of Meeting, the Company’s authorized share capital consists of an unlimited number of Common Shares of which 131,397,506
Common Shares are issued and outstanding and an unlimited number of preferred shares, issuable in series, none of which are issued
or outstanding. All Common Shares carry the right to one vote.

 

Shareholders registered as at
April 25, 2018, are entitled to attend and vote at the Meeting. Shareholders who wish to be represented by proxy at the Meeting
must, to entitle the person appointed by the Proxy to attend and vote, deliver their Proxies at the place and within the time set
forth in the notes to the Proxy.

 

To the knowledge of Management,
the only person or company that beneficially owns, or controls or directs, directly or indirectly, voting securities carrying 10%
or more of the voting rights attached to any class of voting securities of the Company as at April 25, 2018 is:

 

	Shareholder Name	 	Number of Common Shares	 	 	Percent of Class	 
	 	 	 	 	 	 	 	 	 
	Emerald Health Sciences Inc.	 	 	45,234,242	 	 	 	37.23	%

 

ELECTION OF DIRECTORS

 

The directors of the Company
are elected annually and hold office until the next annual general meeting of the shareholders or until their successors are elected
or appointed. Management proposes to nominate the persons listed below for election as directors of the Company to serve until
their successors are elected or appointed. In the absence of instructions to the contrary, Proxies given pursuant to the solicitation
by Management will be voted for the nominees listed in this Circular. Management does not contemplate that any of the nominees
will be unable to serve as a director. The number of directors of the Company was set at four at the Company’s last annual
general meeting. Shareholders will be asked at the Meeting to pass an ordinary resolution to set the number of directors for the
ensuing year at five.

 

    	- 4 -

     

    

 

Pursuant to Article 11.6 of the
Company’s Articles, any additional director nominations for an annual general meeting must be received by the Company, not
less than 30, nor more than 65 days prior to the date of the meeting. As no nominations were received by May 1, 2018 being the
date which is 30 days prior to the Meeting, management’s nominees for election as directors set forth below will be the only
nominees eligible to stand for election at the Meeting.

 

The following table sets out
the names of the nominees for election as directors, the offices they hold within the Company, if any, their occupations, the length
of time they have served as directors of the Company, and the number of shares of the Company which each beneficially owns, directly
or indirectly, or over which control or direction is exercised, as of the date of this Circular.

 

	Name, province or state

 and country of residence 

and position, if any, held

in the Company	 	Principal occupation 

during the past five years	 	Served as director of 

the Company since	 	Number of 

Common Shares 

of the Company 

beneficially 

owned, directly 

or indirectly, or 

controlled or 

directed at 

present
	 	 	 	 	 	 	 
	
        Dr. Avtar Dhillon (1)(2)

        Long Beach, California

        Executive Chairman and Director
	 	Chairman, Inovio Pharmaceuticals, Inc., whose principal business is development of DNA vaccines.	 	April 23, 2015	 	Nil
	 	 	 	 	 	 	 
	
        Jim Heppell (2),(4), (5)

        North Vancouver,
        BC

        Director
	 	
        Past President & Director, BC Advantage Funds,
whose principal business is investing in, and building, life science and technology companies in British Columbia.
	 	April 23, 2015	 	Nil
	 	 	 	 	 	 	 
	
        Punit Dhillon (2),(3),(4), (6)

        San Diego, California

        Director
	 	
        Former CEO, OncoSec Medical, Inc., whose principal
        business is development of biopharmaceuticals.
	 	April 23, 2015	 	Nil
	 	 	 	 	 	 	 
	
        Bob Rai (1),(3), (4), (7)

        Surrey, BC

        Director
	 	
        Owner of several Medicine Shoppe pharmacies in Greater
Vancouver, British Columbia.
	 	August 8, 2017	 	Nil
	 	 	 	 	 	 	 
	
        Chris Wagner(8)

        Vancouver, BC

        Chief Executive Officer

        and Director
	 	
        CEO, Emerald Health Therapeutics; Former CEO, Contextual
Genomics Inc. whose principal business is development of molecular diagnostics.
	 	October 2, 2017	 	Nil

 

Notes:

		(1)	Member of the Audit Committee.

		(2)	Also a director of Emerald Health Sciences Inc., which
is a control person of the Company, holding approximately 34% of the issued and outstanding Common Shares on an undiluted basis
as of the date of this Circular.

		(3)	Member of the Governance and Nomination Committee of the
Board (the “Governance and Nominating Committee”).

 

    	- 5 -

     

    

 

		(4)	Member of the Compensation Committee of the Board (the
“Compensation Committee”).

		(5)	Chairman of the Compensation Committee.

		(6)	Chairman of the Audit Committee.

		(7)	Chairman of the Governance and Nominating Committee.

		(8)	Chris Wagner was appointed as an additional director and
chief executive officer of the Company on October 2, 2017.

 

No proposed director is being
elected under any arrangement or understanding between the proposed director and any other person or company.

 

Corporate Cease Trade Orders or Bankruptcies

 

No director or proposed director
of the Company is, or within the ten years prior to the date of this Circular has been, a director or executive officer of any
company, including the Company, that while that person was acting in that capacity:

 

		(a)	was the subject of a cease trade order or similar order or an order that denied the company access
to any exemption under securities legislation for a period of more than 30 consecutive days; or

 

		(b)	was subject to an event that resulted, after the director ceased to be a director or executive
officer of the company being the subject of a cease trade order or similar order or an order that denied the relevant company access
to any exemption under securities legislation, for a period of more than 30 consecutive days; or

 

		(c)	within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal
under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise
with creditors or had a receiver, receiver manager or trustee appointed to hold its assets.

 

Individual Bankruptcies

 

No director or proposed director
of the Company has, within the ten years prior to the date of this Circular, become bankrupt or made a proposal under any legislation
relating to bankruptcy or insolvency, or been subject to or instituted any proceedings, arrangement or compromise with creditors,
or had a receiver, receiver manager or trustee appointed to hold the assets of that individual.

 

Penalties or Sanctions

 

None of the proposed directors
have been subject to any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory
authority, have entered into a settlement agreement with a securities regulatory authority or have been subject to any other penalties
or sanctions imposed by a court or regulatory body that would be likely to be considered important to a reasonable security holder
deciding about whether to vote for the proposed director.

 

    	- 6 -

     

    

 

DIRECTOR AND NAMED EXECUTIVE OFFICER
COMPENSATION

 

Named Executive Officers

 

For the purpose of this Information Circular:

 

“CEO” of the
Company means each individual who acted as chief executive officer of the Company or acted in a similar capacity for any part of
the most recently completed financial year;

 

“CFO” of the
Company means each individual who acted as chief financial officer of the Company or acted in a similar capacity for any part of
the most recently completed financial year; and

 

“Named Executive Officer”
or “NEO” means: (a) each CEO, (b) each CFO, (c) the most highly compensated executive officer, or the most highly
compensated individual acting in a similar capacity, other than the CEO and CFO, at the end of the most recently completed financial
year whose total compensation was more than $150,000; and (d) each individual who would be a NEO under (c) above but for the fact
that the individual was neither an executive officer of the Company, nor acting in a similar capacity, at the end of that financial
year.

 

Director and Named Executive Officer Compensation,
Excluding Compensation Securities

 

The following table sets forth
the compensation (excluding compensation securities) paid or awarded to the Company’s Named Executive Officers and directors
for the financial years ended December 31, 2017 and December 31, 2016.

 

	Compensation Excluding Compensation Securities
	 	 	 	 	Salary, 
 consulting 
 fee, 
 retainer or	 	 	 	 	 	Committee 
 or meeting	 	 	Value of	 	 	Value of all 
 other	 	 	Total	 
	Name and principal	 	 	 	commission	 	 	Bonus	 	 	fees(9)	 	 	perquisites	 	 	compensation	 	 	compensation	 
	position	 	Year	 	($)	 	 	($)	 	 	($)	 	 	($)	 	 	($)	 	 	($)	 
	Dr. Avtar Dhillon(1),(9)	 	2017	 	 	45,000	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	45,000	 
	Director and	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	Executive Chairman	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chris Wagner(2),(9)	 	2017	 	 	62,500	 	 	 	Nil	 	 	 	Nil	 	 	 	450	 	 	 	Nil	 	 	 	62,950	 
	Director and CEO	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rob Hill(3)	 	2017	 	 	25,000	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	25,000	 
	CFO	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dr. Bin Huang(4)	 	2017	 	 	211,667	 	 	 	Nil	 	 	 	Nil	 	 	 	1,800	 	 	 	Nil	 	 	 	213,467	 
	Former President,	 	2016	 	 	150,000	 	 	 	37,500	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	187,500	 
	CEO and COO	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COO of EHTC	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jim Heppell(5),(9),(10)	 	2017	 	 	30,000	 	 	 	Nil	 	 	 	3,000	 	 	 	Nil	 	 	 	Nil	 	 	 	33,000	 
	Director	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Punit Dhillon(6),(9),(11)	 	2017	 	 	30,000	 	 	 	Nil	 	 	 	7,000	 	 	 	Nil	 	 	 	Nil	 	 	 	37,000	 
	Director	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bob Rai(7),(9)	 	2017	 	 	30,000	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	30,000	 
	Director	 	2016	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sandra Pratt(8)	 	2017	 	 	150,769	 	 	 	Nil	 	 	 	Nil	 	 	 	1,650	 	 	 	Nil	 	 	 	152,419	 
	Former CFO and 
Corporate Secretary	 	2016	 	 	140,000	 	 	 	30,000	 	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	 	170,000	 

 

    	- 7 -

     

    

 

Notes:

		(1)	Dr. Avtar Dhillon was appointed as a director of the Company
on April 23, 2015 and Executive Chairman of the Board on April 23, 2015.

		(2)	Mr. Chris Wagner was appointed as a director and CEO of
the Company on October 2, 2017.

		(3)	Mr. Rob Hill was appointed as CFO of the Company on November
15, 2017.

		(4)	Dr. Bin Huang resigned as President, CEO and COO of the
Company on September 27, 2017 but remains COO of Emerald Health Therapeutics Canada Inc., a wholly owned subsidiary of the Company
(“EHTC”).

		(5)	Mr. Jim Heppell was initially appointed as a director on
April 23, 2015.

		(6)	Mr. Punit Dhillon was initially appointed as a director
on April 23, 2015.

		(7)	Mr. Bob Rai was initially appointed as a director on August
8, 2016.

		(8)	Ms. Sandra Pratt resigned as CFO and Corporate Secretary
of the Company on November 15, 2017.

		(9)	Each of the directors, who are not also executive officers
of the Company, is paid a fee of $30,000 per annum for serving as a director of the Company. Dr. Avtar Dhillon is paid a fee of
$45,000 per annum for service as Executive Chairman of the Board. Mr. Chris Wagner does not receive a fee in addition to his compensation
as CEO for his role as a director.

		(10)	Mr. Jim Heppell is paid a fee of $3,000 per annum for serving
as Chairman of the Compensation Committee.

		(11)	Mr. Punit Dhillon is paid a fee of $7,000 per annum for
serving as Chairman of the Audit Committee.

 

Stock Options and Other Compensation Securities

 

The following table sets forth
all compensation securities granted or issued to each of the Company’s directors and Named Executive Officers by the Company
or one of its subsidiaries in the most recently completed financial year for services provided or to be provided, directly or indirectly,
to the Company or any of its subsidiaries:

 

	Compensation Securities
	Name and

                                                                                principal position
	 	Type of 
 compensation
 security	 	Number of 
 compensation
  securities,
    
 number of 
 underlying 
 securities and
 percentage of 
 class(9),(10)	 	Date of issue or 
 grant	 	Issue, 
 conversion 
 or exercise
 price
 ($)	 	 	Closing
 price of 
 security or 
 underlying 
 security on
 date of
 grant
 ($)	 	 	Closing price
 of security or
 underlying
 security at
 year end
 ($)	 	 	Expiry date 
 (options) /
 Settlement 
 date (restricted 
 share units)
	Dr. Avtar Dhillon(1)
 Director and
 Executive
 Chairman
	 	Stock options	 	750,000 options, 
exercisable for 
750,000 
underlying 
Common Shares	 	December 22, 
2017	 	$	4.25	 	 	$	5.00	 	 	$	5.21	 	 	December 22, 
2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Restricted share units	 	250,000 units, to 
be settled for 
250,000 
underlying 
Common Shares	 	December 22, 
2017	 	$	0.00	 	 	$	5.00	 	 	$	5.21	 	 	January 15, 2019
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chris Wagner(2)
 Director and CEO
	 	Stock options	 	500,000 options, 
exercisable for 
500,000 
underlying 
Common Shares	 	October 2, 2017	 	$	1.29	 	 	$	1.35	 	 	$	5.21	 	 	October 2, 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	500,000 options,
 exercisable for
 500,000
 underlying
 Common Shares	 	December 21,
 2017	 	$	4.25	 	 	$	4.25	 	 	$	5.21	 	 	December 21,
 2022

 

 

    	- 8 -

     

    

 

	
Compensation Securities

	Name and

 principal position	 	Type of 
 compensation 
 security	 	Number of 
 compensation 

    securities, 
 number of 
 underlying 
 securities and
 percentage of 
 class(9),(10)	 	Date of issue
 or grant	 	Issue, 
 conversion 
 or exercise
 price
 ($)	 	 	Closing
 price of 
 security or 
 underlying 
 security on
 date of
 grant
 ($)	 	 	Closing price
 of security or 
 underlying 
 security at
 year end
 ($)	 	 	Expiry date 
 (options) /
 Settlement 
 date (restricted 
 share units)
	Rob Hill(3)
 CFO	 	Stock options	 	250,000 options,
 exercisable for
 250,000
 underlying
 Common Shares	 	November 15,
 2017	 	$	2.33	 	 	$	2.45	 	 	$	5.21	 	 	November 15,
 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	250,000 options,
 exercisable for
 250,000
 underlying
 Common Shares	 	December 21,
 2017	 	$	4.25	 	 	$	4.25	 	 	$	5.21	 	 	December 21,
 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Dr. Bin Huang(4)
 Former President, 
 CEO and COO
 Current COO of EHTC	 	Stock options	 	50,000 options,
 exercisable for
 50,000
 underlying
 Common Shares	 	December 22,
 2017	 	$	4.25	 	 	$	5.00	 	 	$	5.21	 	 	December 22,
 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Jim Heppell(5) 
 Director	 	Stock options	 	100,000 options,
 exercisable for
 100,000
 underlying
 Common Shares	 	December 22,
 2017	 	$	4.25	 	 	$	5.00	 	 	$	5.21	 	 	December 22,
 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Restricted share units	 	100,000 units, to
 be settled for
 100,000
 underlying
 Common Shares	 	December 22,
 2017	 	$	0.00	 	 	$	5.00	 	 	$	5.21	 	 	January 15, 2019
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Punit Dhillon(6) 
 Director
	 	Restricted share units	 	200,000 units, to
 be settled for
 200,000
 underlying
 Common Shares	 	December 15,
 2017	 	$	0.00	 	 	$	4.92	 	 	$	5.21	 	 	December 15,
 2020
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bob Rai(7)
 Director	 	Stock options	 	75,000 options,
 exercisable for
 75,000
 underlying
 Common Shares	 	December 22,
 2017	 	$	4.25	 	 	$	5.00	 	 	$	5.21	 	 	December 22,
 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sandra Pratt(8)
 Former CFO and
 Corporate Secretary	 	Nil	 	Nil	 	Nil	 	 	Nil	 	 	 	Nil	 	 	 	Nil	 	 	Nil

 

    	- 9 -

     

    

 

		(1)	As of the last day of the most recently completed financial
year end, Dr. Dhillon held 2,250,000 options, each exercisable for one Common Share and 250,000 restricted share units (“RSUs”)
each to be settled on vest date for one Common Share. 1,000,000 options, 500,000 options and 187,500 options vested immediately
on April 25, 2015, September 28, 2016 and December 22, 2017 respectively.

		(2)	As of the last day of the most recently completed financial
year end, Mr. Wagner held 1,000,000 options, each exercisable for one Common Share. 125,000 options and another 125,000 options
vested immediately on October 31, 2017 and December 21, 2017 respectively.

		(3)	As of the last day of the most recently completed financial
year end, Mr. Hill held 500,000 options, each exercisable for one Common Share. 62,500 options and another 62,500 options vested
immediately on November 15, 2017 and December 21, 2017 respectively.

		(4)	As of the last day of the most recently completed financial
year end, Dr. Huang held 510,000 options, each exercisable for one Common Share. 160,000 options vest daily and 300,000 options
vest monthly, over 36 months from the grant date of December 1, 2014 and September 28, 2016 respectively, and 12,500 vested immediately
on December 22, 2017.

		(5)	As of the last day of the most recently completed financial
year end, Mr. Heppell held 475,000 options, each exercisable for one Common Share and 250,000 RSUs each to be settled on vest
date for one Common Share. 250,000 options, 125,000 options and 25,000 options vested immediately on April 25, 2015, September
28, 2016 and December 22, 2017 respectively.

		(6)	As of the last day of the most recently completed financial
year end, Mr. Dhillon held 375,000 options, each exercisable for one Common Share and 200,000 RSUs each to be settled on vest
date for one Common Share. 250,000 options and 125,000 options vested immediately on April 25, 2015 and September 28, 2016 respectively.

		(7)	As of the last day of the most recently completed financial
year end, Mr. Rai held 325,000 options, each exercisable for one Common Share. 200,000 options, 50,000 options and 18,750 options
vested immediately on August 24, 2016, September 28, 2016 and December 22, 2017 respectively.

		(8)	As of the last day of the most recently completed financial
year end, Ms. Pratt held 245,000 options, each exercisable for one Common Share. 70,000 options vest daily and 175,000 options
vest monthly, over 36 months from the grant date of January 26, 2015 and September 28, 2016 respectively.

		(9)	All options issued and outstanding as of December 31, 2016
are governed by the Previous Plan (as defined below). All options and RSUs issued and outstanding subsequent to May 8, 2017 are
governed by the Amended Plan (as defined below).

		(10)	The stock options and RSUs held by each of the Named Executive
Officers and directors listed above, if exercised (options) and settled (RSUs), would represent between 0.2% and 2.1% of the issued
and outstanding Common Shares.

 

Exercise of Compensation Securities

 

Exercises of compensation securities
by a director or named executive officer during the most recently completed financial year were as follows:

 

	Name and 

principal position	 	Type of
 compensation
 security	 	Number of
 compensation
 securities,
 number of
 underlying
 securities and
 percentage of
 class	 	Exercise Price
 per security
 ($)	 	 	Date of 
 Exercise	 	Closing 
 price per 
 security on
 date of
 exercise 
 ($)	 	 	Difference
 between
 exercise price
 and closing on
 date of
 exercise
 ($)	 	 	Total value on
 exercise date
 ($)	 
	Dr. Bin Huang
 Former President,
 CEO and COO
 Current COO of
 EHTC
	 	Stock options	 	100,000 options,
 exercised for
 100,000 underlying
 Common Shares	 	$	0.55	 	 	Oct 17, 2017	 	$	1.39	 	 	$	0.84	 	 	$	84,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	81,500 options,
 exercised for
 81,500 
underlying
 Common Shares	 	$	0.55	 	 	Nov 1, 2017	 	$	1.53	 	 	$	0.98	 	 	$	79,870	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	40,000 options,
 exercised for
 40,000
 underlying
 Common Shares	 	$	0.55	 	 	Nov 16, 2017	 	$	2.26	 	 	$	1.71	 	 	$	68,400	 

 

    	- 10 -

     

    

 

	Name and
 principal position	 	Type of 
 compensation
 security	 	Number of 
 compensation 
 securities, 
 number of 
 underlying 
 securities and 
 percentage of
 class	 	Exercise Price
 per security
 ($)	 	 	Date of 
 Exercise	 	Closing
 price per
 security on
 date of
 exercise
 ($)	 	 	Difference 
 between 
 exercise price 
 and closing on 
 date of 
 exercise 
 ($)	 	 	Total value on
 exercise date
 ($)	 
	Sandra Pratt
 Former CFO and
 Corporate
 Secretary
	 	Stock options	 	50,000 options,
 exercised for
 50,000
 underlying
 Common Shares	 	$	0.41	 	 	Sep 19, 2017	 	$	1.27	 	 	$	0.86	 	 	$	43,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	60,000 options,
 exercised for
 60,000
 underlying
 Common Shares	 	$	0.41	 	 	Nov 20, 2017	 	$	2.43	 	 	$	2.02	 	 	$	121,200	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	50,000 options,
 exercised for
 50,000
 underlying
 Common Shares	 	$	0.41	 	 	Nov 23, 2017	 	$	2.70	 	 	$	2.29	 	 	$	114,500	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	40,000 options,
 exercised for
 40,000
 underlying
 Common Shares	 	$	0.41	 	 	Dec 4, 2017	 	$	3.28	 	 	$	2.87	 	 	$	114,800	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock options	 	30,000 options,
 exercised for
 30,000
 underlying
 Common Shares	 	$	0.41	 	 	Dec 13, 2017	 	$	4.80	 	 	$	4.39	 	 	$	131,700	 

 

Omnibus Incentive Plan

 

The shareholders of the Company approved the Company’s
omnibus incentive plan (the “Plan”) to replace the Company’s previous stock option plan (the “Previous
Plan”) at the annual general and special meeting of shareholders held June 15, 2017. The policies of the TSX Venture
Exchange (“TSXV”) require that the Plan be approved by shareholders of the Company annually.

 

Pursuant to the Plan, the Board is permitted to make amendments
necessary to comply with applicable law or the requirements of the TSXV, provided that such amendments do not adversely alter or
impair the rights of any Participant (as such term is defined in the Plan) without the consent of such Participant, that such amendments
are in compliance with applicable law and that such amendments are subsequently approved by the shareholders of the Company. The
TSXV requested the Company make certain amendments to the Plan (the “Amendments”), as described below under
the heading “Amended Plan”. In accordance with the request of the TSXV, the Board incorporated the Amendments
and subsequently approved the amended and restated omnibus incentive plan (the “Amended Plan”) on September
18, 2017. The shareholders of the Company are being asked at the Meeting to approve the Amended Plan, as required by the policies
of the TSXV.

 

    	- 11 -

     

    

 

Amended Plan

 

Pursuant to the request of the TSXV, the Board amended the Plan
by incorporating the following Amendments:

 

		(a)	clarification that award agreements evidencing options
issued to Consultants (as defined in the Plan) performing investor relations activities must specify that such options will vest
in stages over at least 12 months with no more than 1/4 of the options vesting in any three month period;

 

		(b)	removal of the option of a cashless exercise right with
regard to the exercise of options granted under the Plan; and

 

		(c)	clarification that the Plan is subject to annual approval
by the TSXV and the shareholders of the Company.

 

The following is a description of the key terms of the Amended
Plan, which is qualified in its entirety by reference to the full text of the Amended Plan, a copy of which is attached as Schedule
“C” to this Circular.

 

Purpose

 

The purpose of the Amended Plan is to assist the Company in
attracting and retaining individuals to serve as employees, directors, consultants or advisors who are expected to contribute to
the Company’s success and to achieve long-term objectives that will benefit shareholders of the Company.

 

Types of Awards

 

The Amended Plan provides for the grant of stock options (“Options”),
stock appreciation rights (“Appreciation Rights”), restricted share units (“Restricted Share Units”),
performance awards (“Performance Awards”) and other share-based awards (“Other Share-Based Awards”)
(each an “Award” and, collectively, the “Awards”). All Awards are granted by an agreement,
certificate or other instrument or document evidencing the Award granted under the Amended Plan (an “Award Agreement”).

 

Shares Available for Awards

 

Subject to adjustments as provided for under the Amended Plan,
the maximum number of Common Shares issuable upon the exercise or redemption and settlement of all Awards under the Amended Plan
will not exceed 10% of the Company’s issued and outstanding Common Shares, less the number of Common Shares subject to grants
of options under the Previous Plan. As of the record date of this Meeting, there were 4,613,839 and 6,363,752 Common Shares reserved
for issuance pursuant to options granted under the Previous Plan and under the New Plan respectively, which together represent
approximately 9.0% of the outstanding Common Shares. A total of 1,170,970 Common Shares are available for issue under the Amended
Plan, representing approximately 1.0% of the outstanding Common Shares.

 

    	- 12 -

     

    

 

Limitation on Grants

 

The Amended Plan provides the follow limitations on grants:

 

		1.	The maximum number of Common Shares issuable upon the exercise
or redemption and settlement of all Awards granted under the Amended Plan shall not exceed ten percent of the outstanding Common
Shares at the time of granting of the Award.

 

		2.	The Company cannot grant more than 1,000,000 Restricted
Share Units.

 

		3.	The Company cannot grant Performance Awards exercisable
into more than 500,000 Performance Shares (as defined in the Amended Plan).

 

		4.	The Company cannot grant Other Share-Based Awards exercisable
into more than 500,000 Common Shares.

 

		5.	The Company cannot grant Appreciation Rights which may
be settled into more than 500,000 Common Shares.

 

		6.	The Company cannot grant Options:

 

		(a)	to any one person in any 12 month period which could, when
exercised, result in the issuance of Common Shares to such person exceeding 5% of the issued and outstanding Common Shares of
the Company unless the Company has obtained the requisite approval to the grant;

 

		(b)	to any one consultant in any 12 month period which could,
when exercised, result in the issuance of Common Shares to such person exceeding 2% of the issued and outstanding Common Shares
of the Company;

 

		(c)	in any 12 month period, to persons employed or engaged
by the Company to perform investor relations activities which could, when exercised, result in the issuance of Common Shares to
such persons exceeding, in aggregate, 2% of the issued and outstanding Common Shares of the Company;

 

		(d)	grant Restricted Share Units, Performance Awards and/or
Other Share-Based Awards to any one person at any one time which could, when exercised, result in the issuance of Common Shares
to such person exceeding 1% of the issued and outstanding Common Shares of the Company; and

 

		(e)	grant Restricted Share Units, Performance Awards and/or
Other Share-Based Awards to any one person in any 12 month period which could, when exercised, result in the issuance of Common
Shares to such person exceeding 2% of the issued and outstanding Common Shares of the Company.

 

Employment, Consulting and Management Agreements

 

Other than as disclosed herein, the Company has not entered
into any other contract, agreement, plan or arrangement that provides for payments to a NEO at, following or in connection with
any termination (whether voluntary, involuntary or constructive), resignation, retirement, a change in control of the Company or
a change in an NEOs responsibilities.

 

    	- 13 -

     

    

 

Chris Wagner - Chief Executive Officer

 

Pursuant to an employment agreement dated and effective October
1, 2017 (the “Wagner Agreement”), Mr. Chris Wagner was retained as the Company’s Chief Executive Officer
at an annual base salary of $290,000, a discretionary performance bonus, four weeks’ annual vacation and provision of group
benefits. The Wagner Agreement provides that if Mr. Wagner is terminated for cause, he will not be entitled to any severance of
any kind. The Wagner Agreement further provides that if the Company terminates Mr. Wagner without cause, the Company will pay Mr.
Wagner six months of severance, or approximately $145,000, for each 12 months that Mr. Wagner is employed by the Company, to a
maximum of 12 months ($290,000). Any payments owed to Mr. Wagner because of the termination of the Wagner Agreement must be paid
within 30 days of Mr. Wagner’s termination.

 

Rob Hill - Chief Financial Officer

 

Pursuant to an employment agreement dated and effective November
15, 2017 (the “Hill Agreement”), Mr. Rob Hill was retained as the Company’s Chief Financial Officer at
an annual base salary of $200,000, a discretionary performance bonus, four weeks’ annual vacation and provision of group
benefits. The Hill Agreement provides that if Mr. Hill is terminated for cause, he will not be entitled to any severance of any
kind. The Hill Agreement further provides that if the Company terminates Mr. Hill without cause, the Company will pay Mr. Hill
six months of severance, or approximately $100,000, for each 12 months that Mr. Hill is employed by the Company, to a maximum of
12 months ($200,000). Any payments owed to Mr. Hill because of the termination of the Hill Agreement must be paid within 30 days
of Mr. Hill’s termination.

 

Dr. Bin Huang - Chief Operating Officer of EHTC

 

Pursuant to an employment agreement dated November 23, 2014
and effective December 1, 2014 (the “Huang Agreement”), Dr. Bin Huang was retained as the Company’s President
and Chief Operating Officer at an annual base salary of $150,000, increased to $200,000 per annum effective January 1, 2017, further
increased to $220,000 per annum effective June 1, 2017, a discretionary performance bonus, four weeks’ annual vacation and
provision of group benefits. Effective January 19, 2015, Dr. Huang was appointed as President and Chief Executive Officer. Dr.
Bin Huang resigned as President, CEO and COO of the Company on September 27, 2017 but remains COO of EHTC. The Huang Agreement
provides that if Dr. Huang is terminated for cause, she will not be entitled to any severance of any kind. The Huang Agreement
further provides that if the Company terminates Dr. Huang without cause, the Company will pay Dr. Huang six months of severance
or approximately $110,000. Any payments owed to Dr. Huang because of the termination of the Huang Agreement must be paid within
30 days of Dr. Huang’s termination.

 

Oversight and Description of Director and Named Executive
Officer Compensation

 

The Compensation Committee, on behalf of the Board, monitors
compensation for the directors and executive officers of the Company. Effective as of June 15, 2017, the Compensation Committee
is comprised of three members: Jim Heppell, Bob Rai, and Punit Dhillon. Mr. Jim Heppell is the Chairman of the Compensation Committee.
Each of Mr. Punit Dhillon and Mr. Bob Rai are independent within the meaning of National Instrument 52-110 Audit Committees
(“NI 52-110”). Mr. Jim Heppell is currently not considered to be independent within the meaning of NI 52-110.

 

    	- 14 -

     

    

 

Director Compensation

 

Other than compensation paid to the NEOs, and except as noted
below, no compensation was paid to directors in their capacity as directors of the Company or its subsidiaries, in their capacity
as members of a committee of the Board or of a committee of the board of directors of its subsidiaries, or as consultants or experts,
during the Company’s most recently completed financial year.

 

Pursuant to resolutions of the Board made effective January
1, 2017, each of the directors of the Company is paid a fee of $30,000 per annum for serving as a director of the Company except
for Dr. Avtar Dhillon, who is paid a fee of $45,000 per annum for serving as the Executive Chairman of the Board. Mr. Jim Heppell
is paid an additional fee of $3,000 per annum for serving as Chairman of the Compensation Committee. Mr. Punit Dhillon is paid
an additional fee of $7,000 per annum for serving as Chairman of the Audit Committee.

 

In addition to fees paid, directors are compensated by the Company
for their services in their capacity as directors by the granting from time to time of incentive stock options in accordance with
the policies of the TSXV as discussed further below and the reimbursement of any out-of-pocket expenses incurred in the course
of their duties as directors. Compensation payable to directors, including the grant of incentive stock options, is reviewed annually.

 

NEO Compensation

 

The Board recognizes that compensation of the Company’s
Named Executive Officers must be sufficient to attract, motivate and retain executives who will work to achieve the Company’s
vision and objectives. The Company has established a Compensation Committee which has been given the authority to assess the performance
of the Company’s officers and employees and determine their compensation, commensurate with current market standards and
the level of the individual’s experience and responsibilities.

 

The Compensation Committee endeavours to ensure that the Company’s
compensation strategy effectively compensates, motivates and rewards senior management of the Company on the basis of individual
and corporate performance, thereby enabling the Company to compete for and retain executives critical to the long-term success
of the Company.

 

To date, the elements of the Company’s Named Executive
Officer compensation have been based on salary, performance bonus, and reimbursement of out-of-pocket expenses, group insurance
benefits, and stock options, which is discussed further below. The Company is a development stage company and does not expect to
be generating significant revenues from operations for a significant period of time. As a result, the Company is unable to use
certain performance standards such as corporate profitability to evaluate its NEOs.

 

The Compensation Committee reviews salaries of the Company’s
Named Executive Officers annually. While the Compensation Committee considers current competitive market conditions while determining
base salaries, there is no evaluation against any “peer group” standard. The Compensation Committee relies on the experience
of its members in setting base salaries. No compensation consultant was retained by the Company in the year ended December 31,
2017.

 

    	- 15 -

     

    

 

Stock Option Grants

 

Stock options are granted to
provide an incentive to the directors and NEOs of the Company to achieve the longer-term objectives of the Company; to give suitable
recognition to the ability and industry of the NEOs and directors; and to attract and retain directors and NEOs with experience
and ability by providing them with the opportunity to acquire an increased proprietary interest in the Company. The Company awards
stock options to its NEOs and directors based upon the recommendation of the Compensation Committee and senior management (for
all awards other than the awards granted to the CEO, which are recommended by the Compensation Committee only) as approved by the
Board. Previous grants of incentive stock options are considered when considering new grants.

 

SECURITIES AUTHORIZED FOR
ISSUANCE UNDER EQUITY COMPENSATION PLANS

 

The following table sets out
those securities of the Company which have been authorized for issuance under equity compensation plans, as at the end of the most
recently completed financial year:

 

	Plan Category	 	Number of securities to be 
 issued upon exercise of 
 outstanding options, 
 warrants and rights
 (a)	 	 	Weighted-average exercise 
 price of outstanding 
 options, warrants and 
 rights
 (b)	 	 	Number of securities 
 remaining available for 
 future issuance under 
 equity compensation plans 
 (excluding securities 
 reflected in column (a))
 (c)	 
	Equity compensation plans approved by the securityholders	 	 	10,686,114	(1)	 	$	1.76	 	 	 	Nil	(2)
	Equity compensation plans not approved by the securityholders	 	 	Nil	 	 	 	N/A	 	 	 	Nil	 
	Total	 	 	10,686,114	 	 	 	-	 	 	 	Nil	 

 

Notes:

		(1)	Stock options and restricted share units outstanding as
at December 31, 2017, which have been granted pursuant to the Company’s prior stock option plan and pursuant to the Plan.

		(2)	The Company has an omnibus incentive plan. The aggregate
number of Common Shares reserved for issuance is a maximum of 10% of the issued and outstanding capital of the Company at the
date of any incentive security grant. As at December 31, 2017, Nil incentive securities remained available for issuance.

 

INDEBTEDNESS OF DIRECTORS AND EXECUTIVE OFFICERS

 

None of the current or former directors, executive officers,
employees of the Company, the proposed nominees of Management for election to the Board, or their respective associates or affiliates,
are or have been indebted to the Company since the beginning of the last completed financial year of the Company.

 

INTEREST OF CERTAIN PERSONS OR COMPANIES
IN MATTERS TO BE ACTED UPON

 

No director or executive officer of the Company or any proposed
nominee of Management of the Company for election to the Board, nor any associate or affiliate of the foregoing persons, has any
material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, since the beginning of the Company’s
last financial year in matters to be acted upon at the Meeting, other than the election of directors, the appointment of auditors
and the approval of the Amended Plan.

 

    	- 16 -

     

    

 

INTEREST OF INFORMED PERSONS IN MATERIAL
TRANSACTIONS

 

Other than as set forth herein, none of the persons who were
directors or executive officers of the Company or a subsidiary at any time during the Company’s last completed financial
year, the proposed nominees of Management for election to the Board, any person or company who beneficially owns, directly or indirectly,
or who exercises control or direction over (or a combination of both) more than 10% of the issued and outstanding Common Shares,
nor the associates or affiliates of those persons, has any material interest, direct or indirect, by way of beneficial ownership
of securities or otherwise, in any transaction or proposed transaction which has materially affected or would materially affect
the Company.

 

During the year ended December 31, 2017, the Company entered
into employment agreements with Chris Wagner, a director and Chief Executive Officer of the Company, and Rob Hill, the Chief Financial
Officer of the Company. Details of these employment agreements are provided under the heading “Employment, Consulting
and Management Agreements”.

 

In May 2017, the Company entered into a thirty-year lease with
a company that is controlled by Dr. Avtar Dhillon, a director and Executive Chairman of the Company, with respect to land in Metro
Vancouver, British Columbia on which the Company is constructing its new production facility. The lease amount of $320,000 per
annum was determined by an independent valuation.

 

On November 27, 2017 for investment purposes, the Company purchased
1,666,667 units of VANC Pharmaceuticals Inc. (“VANC”), a company listed on the TSXV. Mr. Bob Rai, a director
of the Company, is also the CEO of VANC. Each unit provided the Company with one common share of VANC and one common share purchase
warrant of VANC. As at December 31, and at May 2, 2018, the Company holds 1,666,667 common shares of VANC and 1,666,667 common
share purchase warrants of VANC. On April 17, 2018, the Company acquired control (via its 51% owned affiliate, 1160305 BC Ltd.)
of an additional 3,030,303 common share purchase warrants. Upon exercise of the common share purchase warrants of VANC, the Company
will control 6,363,637 common shares of VANC, representing 17.7% of the issued and outstanding common shares of VANC, assuming
no share issuances to other parties.

 

On January 1, 2018, the Company entered into a third amended
and restated Independent Contractor Agreement (the “Third Amended and Restated ICA”) with Emerald Health Sciences
Inc. (“Sciences”), a control person of the Company, and of which Avtar Dhillon, Jim Heppell and Punit Dhillon
(each of whom is a director of the Company) are each a director, as more particularly described below. Pursuant to the terms of
the Third Amended and Restated ICA, Sciences will provide to the Company certain services relating to, among other things, corporate
administration and strategy, facility management and construction, business development, human resources and scientific advisory
and technical advice for a fixed monthly fee of $350,000.

 

As of December 31, 2017, Sciences held an aggregate of 45,636,555
Common Shares, representing approximately 42.74% of the issued and outstanding Common Shares (on an undiluted basis) as at December
31, 2017 and 8,489,451 Common Share purchase warrants. As of the date of this Circular, Sciences holds approximately 34.43% of
the issued and outstanding Common Shares (on an undiluted basis) and 4,411,764 Common Share purchase warrants.

 

    	- 17 -

     

    

 

Sciences has an address of Office 8262, The Landing, 200 - 375
Water Street, Vancouver, BC V6B 0M9.

 

MANAGEMENT CONTRACTS

 

Other than as disclosed elsewhere in this Circular, no Management
functions of the Company are to any substantial degree performed by a person or company other than the directors or NEOs of the
Company.

 

AUDIT COMMITTEE

 

The Company is required to have an audit committee (the “Audit
Committee”) comprised of not less than three directors, a majority of whom are not officers, control persons or employees
of the Company or an affiliate of the Company.

 

Audit Committee Charter

 

The text of the Audit Committee’s charter is attached
as Schedule “A” to this Circular.

 

Composition of Audit Committee and Independence

 

Effective as of June 15, 2017, the Audit Committee consists
of Punit Dhillon, Bob Rai and Dr. Avtar Dhillon. Mr. Punit Dhillon and Mr. Bob Rai are considered to be independent within the
meaning of NI 52-110 and Dr. Avtar Dhillon is not considered to be independent within the meaning of NI 52-110, as he is the Executive
Chairman of the Board. Mr. Punit Dhillon is the Chairman of the Audit Committee. In keeping the requirements of the Company’s
Audit Committee Charter (attached as Schedule “A” hereto) and TSXV Policy 3.1, the Audit Committee is to consist of
a majority of directors who are not officers, control persons or employees of the Company or an affiliate of the Company.

 

NI 52-110 provides that a member of an audit committee is “independent”
if the member has no direct or indirect material relationship with the Company, which could, in the view of the Company’s
Board, reasonably interfere with the exercise of the member’s independent judgment.

 

NI 52-110 provides that an individual is “financially
literate” if he or she has the ability to read and understand a set of financial statements that present a breadth and level
of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably
be expected to be raised by the Company’s financial statements. All of the members of the Audit Committee are “financially
literate” as that term is defined. The following sets out the Audit Committee members’ education and experience that
is relevant to the performance of his responsibilities as an audit committee member.

 

Relevant Education and Experience

 

The relevant education and/or experience of each member of the
Audit Committee is as follows:

 

Punit Dhillon, Director

 

Punit Dhillon is the co-founder and former CEO of OncoSec Medical,
Inc. a biopharmaceutical company developing its advanced-stage immunotherapy to treat solid tumors. Mr. Dhillon was formerly Vice
President of Finance and Operations at Inovio Pharmaceuticals, Inc. During his management, Mr. Dhillon has raised over $160 million
through multiple financings and several licensing transactions, including early stage deals with
Merck and Wyeth. More recently, Punit led the development of a pipeline of novel immunotherapy candidates for a wide range of solid
tumor applications at OncoSec with an industry leading technology. Punit’s management experience spans corporate finance,
mergers and acquisitions, integration, successful in-licensing of key intellectual property, strategy implementation, corporate
transactions and collaborations with leading Universities and working with several key opinion leaders across the globe.

 

    	- 18 -

     

    

 

Avtar Dhillon, M.D., Director

 

Dr. Avtar Dhillon is a successful entrepreneur who has been
instrumental in founding, and developing numerous companies, including the following public companies: Inovio Pharmaceuticals,
developing next generation DNA based vaccines; Arch Therapeutics, Inc., developing revolutionary bleeding hemostasis products;
OncoSec Biomedical, developing leading cancer therapies; and Vitality Biopharma (formally Stevia First), developing cannabinoid
prodrug pharmaceuticals. Avtar has more than 20 years of experience in building public companies through mergers and acquisitions,
leading innovation in scientific, engineering and farming enterprises, securing government grants and non-governmental organization
funding, and building intellectual property portfolios through partnering and negotiating deals with small businesses as well as
large multibillion dollar companies. The former President and Chief Executive Officer of Inovio Pharmaceuticals, Inc. (NASDAQ:
INO), he currently serves as the Company’s Executive Chairman.

 

Bob Rai, Director

 

Mr. Rai is a graduate of the University of British Columbia
with a Degree in Biochemistry and Pharmaceutical Science. He is an entrepreneur with over 20 years of experience in operating “The
Medicine Shoppe” Pharmacies in Greater Vancouver, Canada. In 1998, he and his partners pioneered the online pharmacy business
to the USA. The sales and distribution of prescription medicines online surpassed expectations and, as other operators followed
suit, became a $2 billion industry across Canada. Mr. Rai introduced HIV Point of Care testing into community pharmacy and introduced
lab testing to pharmacies including a chronic kidney disease screening using the HealthTab technology. Both were firsts in Canada.
Mr. Rai is a member of the Alumni UBC Advisory Council representing the Faculty of Pharmaceutical Science. Mr. Rai is also Chairman
and CEO of Canadian Pacific Global Pharmaceuticals and Chairman of its subsidiary PharmaCanada Inc.

 

Reliance on Certain Exemptions

 

Since the commencement of the Company’s most recently
completed financial year, the Company has not relied on:

 

		(a)	the exemption in section
2.4 (De Minimis Non-audit Services) of NI 52-110;

 

		(b)	the exemption in subsection
6.1.1(4) (Circumstance Affecting the Business or Operations of the Venture Issuer)
of NI 52 110;

 

		(c)	the exemption in subsection
6.1.1(5) (Events Outside Control of Member) of NI 52-110;

 

		(d)	the exemption in subsection
6.1.1(6) (Death, Incapacity or Resignation) of NI 52-110; or

 

		(e)	an exemption from NI 52-110,
in whole or in part, granted under Part 8 (Exemptions).

 

    	- 19 -

     

    

 

Pre-Approval Policies and Procedures

 

The Audit Committee has not adopted any specific policies and
procedures for the engagement of non-audit services.

 

Audit Fees

 

The following table sets forth, by category, the fees for all
services rendered by the Company’s external auditors, Deloitte LLP, for the financial years ended December 31, 2017 and 2016,
are as set out below (including estimates).

 

	 	 	2017	 	 	2016	 
	 	 	($)	 	 	($)	 
	 	 	 	 	 	 	 
	Audit fees(1)	 	 	215,500	 	 	 	108,234	 
	 	 	 	 	 	 	 	 	 
	Audit related fees(2)	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 
	Tax fees(3)	 	 	49,000	 	 	 	12,832	 
	 	 	 	 	 	 	 	 	 
	All other fees(4)	 	 	Nil	 	 	 	Nil	 
	 	 	 	 	 	 	 	 	 
	Total	 	 	264,500	 	 	$	121,066	 

 

Notes:

		(1)	“Audit fees” include aggregate fees billed
by the Company’s external auditor in each of the last two fiscal years for audit fees. The current auditor of the Company
is Deloitte LLP. See “Appointment of Auditor”, above, for further details.

 

		(2)	“Audit related fees” include the aggregate
fees billed in each of the last two fiscal years for assurance and related services by the Company’s external auditor that
are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported
under “Audit fees” above. The services provided include employee benefit audits, due diligence assistance, accounting
consultations on proposed transactions, internal control reviews and audit or attest services not required by legislation or regulation.

 

		(3)	“Tax fees” include the aggregate fees billed
in each of the last two fiscal years for professional services rendered by the Company’s external auditor for tax compliance,
tax advice and tax planning. The services provided include tax planning and tax advice includes assistance with tax audits and
appeals, tax advice related to mergers and acquisitions, and requests for rulings or technical advice from tax authorities.

 

		(4)	“All other fees” include the aggregate fees
billed in each of the last two fiscal years for products and services provided by the Company’s external auditor, other
than “Audit fees”, “Audit related fees” and “Tax fees” above.

 

Exemption in Section 6.1

 

The Company is a “venture issuer” as defined in
NI 52-110 and is relying on the exemption in section 6.1 of NI 52-110 relating to Parts 3 (Composition of Audit Committee)
and 5 (Reporting Obligations).

 

CORPORATE GOVERNANCE DISCLOSURE

 

National Instrument 58-101, Disclosure of Corporate Governance
Practices, requires all reporting issuers to provide certain annual disclosure of their corporate governance practices with
respect to the corporate governance guidelines (the “Guidelines”) adopted in National Policy 58-201. These Guidelines
are not prescriptive, but have been used by the Company in adopting its corporate governance practices. The Board and senior management
of the Company consider good corporate governance to be an integral part of the effective and efficient operation of Canadian corporations.
The Company’s approach to corporate governance is set out below.

 

    	- 20 -

     

    

 

Board of Directors

 

Management is nominating five individuals for election to the
Company’s Board at the Meeting, all of whom are current directors of the Company.

 

The definition of “independent” directors under
NI 52-110 provides that a director is independent if he or she has no direct or indirect “material relationship” with
the Company. The “material relationship” is defined as a relationship, which could, in the view of the Company’s
Board, reasonably interfere with the exercise of a director’s independent judgement. Of current members of the Board, Punit
Dhillon and Bob Rai are considered to be independent within the meaning of NI 52-110. Dr. Avtar Dhillon, who is the Executive Chairman
of the Company and the Chairman of Sciences, which holds a controlling interest in the Company, is not considered to be independent
within the meaning of NI 52-110. Mr. Wagner, who is the Chief Executive Officer of the Company is not considered to be independent
within the meaning of NI 52-110. Mr. Jim Heppell is also not considered to be independent within the meaning of NI 52-110.

 

The Board has a stewardship responsibility to supervise the
management of and oversee the conduct of the business of the Company, provide leadership and direction to Management, evaluate
Management, set policies appropriate for the business of the Company and approve corporate strategies and goals. The day-to-day
management of the business and affairs of the Company is delegated by the Board to the CEO and President. The Board will give direction
and guidance through the President to Management and will keep Management informed of its evaluation of the senior officers in
achieving and complying with goals and policies established by the Board.

 

The mandate of the Board, as prescribed by the Business Corporations
Act (British Columbia), is to manage or supervise management of the business and affairs of the Company and to act with a view
to the best interests of the Company. In doing so, the Board oversees the management of the Company’s affairs directly and
through its committees.

 

The Board recommends nominees to the shareholders for election
as directors, and immediately following each annual general meeting appoints an Audit Committee, Compensation Committee and Governance
and Nomination Committee and the chairperson of each committee. The Board establishes and periodically reviews and updates the
mandates, charters, duties and responsibilities of each committee of the Board, elects a chairperson of the Board and establishes
his or her duties and responsibilities, appoints the CEO, CFO and President of the Company and establishes the duties and responsibilities
of those positions and on the recommendation of both the CEO and the President, appoints the senior officers of the Company and
approves the senior management structure of the Company.

 

The Board exercises its independent supervision over management
by its policies that (a) periodic meetings of the Board be held to obtain an update on significant corporate activities and plans;
and (b) all material transactions of the Company are subject to prior approval of the Board. The Board shall meet not less than
three times during each year and will endeavour to hold at least one meeting in each fiscal quarter. The Board will also meet at
any other time at the call of the CEO, or subject to the Articles of the Company, of any director.

 

    	- 21 -

     

    

 

Directorships

 

The following directors of the Company are also directors of
other listed issuers as stated below:

 

		·	Dr.
Avtar Dhillon is a director of Inovio Pharmaceuticals, Inc. (NASDAQ: INO), OncoSec Medical, Inc. (NASDAQ: ONCS), Arch Therapeutics,
Inc. (OTCQB, ARTH), and Vitality Biopharma, Inc. (OTCQB: VBIO);

 

		·	Jim
Heppell is a director of Sophiris Bio Inc. (NASDAQ: SPHS) and Nemus Biosciences, Inc. (OTCQB: NMUS ;

 

		·	Punit
Dhillon is a director of OncoSec Medical, Inc. (NASDAQ: ONCS) and Nemus Biosciences, Inc. (OTCQB: NMUS); and

 

		·	Bob
Rai is a director of VANC Pharmaceutical Inc. (TSXV: V.VANC)

 

Orientation and Continuing Education

 

The Company does not have a formal orientation and education
program for new directors. New directors will be given the opportunity to familiarize themselves with the Company’s operations
and the current directors and members of Management. Directors are also encouraged and given the opportunity for continuing education.

 

Ethical Business Conduct

 

The Board encourages and promotes a culture of ethical business
conduct through communication and supervision as part of its overall stewardship responsibility. As of May 12, 2016, the Board
has adopted a Code of Business Conduct and Ethics (the “Code”) to be followed by the Company’s directors,
officers and employees and those of its subsidiaries. The Code is also to be followed, where appropriate, by the Company’s
agents and representatives, including consultants where specifically required. The purpose of the Code is to, among other things,
promote honest and ethical conduct, avoid conflict of interest, protect confidential information and comply with the applicable
government laws and securities rules and regulations.

 

In accordance with applicable corporate law, any director who
is in a position of conflict must refrain from voting on any resolution of the Board with respect to the conflict. The Board may
also require the director to excuse himself or herself from deliberations of the Board or may alternatively refer the matter for
consideration by a committee of independent directors of the Board.

 

In addition to the above, the Board has also adopted a policy
on trading in securities of the Company to promote a culture of ethical conduct.

 

Nomination of Directors

 

Effective as of June 15, 2017, the Governance and Nomination
Committee consists of two directors: Bob Rai and Punit Dhillon. Mr. Bob Rai is the Chairman of the Governance and Nomination Committee.
Mr. Bob Rai and Mr. Punit Dhillon are both independent directors of the Company.

 

    	- 22 -

     

    

 

The Governance and Nomination Committee is responsible for developing
and monitoring the Corporation’s approach to corporate governance issues. The Committee oversees the effective functioning
of the Board, oversees the relationship between the Board and management, ensures that the Board can function independently of
management at such times as is desirable or necessary, identifies individuals qualified to become new Board members and recommends
to the Board the director nominees at each annual meeting of shareholders.

 

In identifying possible nominees to the Board, the Governance
and Nomination Committee considers the competencies and skills necessary for the Board as a whole, the skills of existing directors
and the competencies and skills each new nominee will bring to the Board, as well as whether or not each nominee will devote sufficient
time and resources to the Board. The Governance and Nomination Committee also annually reviews and makes recommendations to the
Board with respect to: (i) the size and composition of the Board; (ii) the appropriateness of the committees of the Board; and
(iii) the effectiveness and contribution of the Board, its committees and individual directors, having reference to their respective
mandates, charters and position descriptions. The Governance and Nomination Committee meets at least annually.

 

Compensation Committee

 

Effective as of June 15, 2017, the Compensation Committee consists
of three directors: Jim Heppell, Chairman of the Compensation Committee, Bob Rai and Punit Dhillon. Mr. Rai and Mr. Dhillon are
considered to be independent within the meaning of NI 52-110. Mr. Heppell is not considered to be independent within the meaning
of NI 52-110.

 

The primary purpose of the Compensation Committee is to enable
the Company to recruit, retain and motivate employees and ensure conformity between compensation and other corporate objectives
and review and recommend for Board consideration, all compensation packages, both present and future, for the Company’s management
and directors (including annual retainer, meeting fees, bonuses and option grants) including any severance packages. A majority
of the members shall not be officers or employees of the Company.

 

Members of the Compensation Committee are appointed or reappointed
at the meeting of the Board following each annual general meeting and from among the appointees to the Compensation Committee,
the Board shall appoint a chairperson (the “Compensation Committee Chairperson”). The duties of the Compensation
Committee Chairperson include overseeing the proper functioning of the Compensation Committee to ensure the proper discharge of
its duties, to schedule meetings and to ensure timely reporting to the Board.

 

The Compensation Committee will meet as often as may be necessary
or appropriate in its judgment.

 

In exercising its mandate, the Compensation Committee sets the
standards for the compensation of directors, employees and officers based on industry data and with the goal to attract, retain
and motivate key persons to ensure the long-term success of the Company. Compensation generally includes the three following components:
base salary, annual bonus based on performance and grant of stock options. The Compensation Committee takes into account the North
American context of its activities and increased competition in the market for its key personnel while also taking into account
the performance and objectives set forth for the Company.

 

    	- 23 -

     

    

 

The Compensation Committee is accountable to the Board and reports
to the Board at its next regular meeting all deliberations and actions it has taken since any previous report. Minutes of Compensation
Committee meetings will be available for review by any member of the Board on request to the Compensation Committee Chairperson.

 

Other Board Committees

 

The Board has no committees, other than the Audit Committee,
Governance and Nomination Committee and Compensation Committee.

 

Assessments

 

Due to the minimal size of the Company’s board of directors,
no formal policy has been established to monitor effectiveness of the directors, the Board and its committees.

 

PARTICULARS OF MATTERS TO BE ACTED UPON 

 

Approval of Omnibus Incentive Plan

 

On June 15, 2017, the shareholders of the Company approved the
Plan. Following approval of the Plan by the shareholders of the Company, the TSXV requested that the Company make Amendments to
the Plan, as described under the heading “Director and Named Executive Officer Compensation – Omnibus Incentive
Plan, Amended Plan”. On September 18, 2017, the Board approved the Amendments and the Amended Plan (a copy of which is
attached as Schedule E to this Circular), subject to shareholder approval. The rules and policies of the TSXV require annual shareholder
approval of security-based compensation arrangements in respect of arrangements that involve the issuance from treasury or potential
issuance from treasury of securities of the issuer. In addition to this annual approval, shareholders of the Company will be asked
to approve the Amendments which now form part of the Amended Plan.

 

As the Amended Plan provides for the potential issuance from
treasury of securities of the Company, shareholders are being asked to vote for or against the following resolution at the Meeting:

 

“WHEREAS the Board of Directors (the “Board”)
of Emerald Health Therapeutics Inc. (the “Company”) approved on September 18, 2017 the adoption of the Amended
and Restated Omnibus Incentive Plan (the “Amended Plan”) for the benefit of the employees, officers, directors
and consultants of the Company or any affiliate of the Company;

 

AND WHEREAS the maximum number of common shares of the Company
(“Shares”) issuable upon the exercise or redemption and settlement of all awards granted under the Amended Plan
shall not exceed 10% of the issued and outstanding Shares at the time of granting of such award less the number of Shares reserved
for issuance under all other security based compensation arrangements of the Company;

 

NOW THEREFORE BE IT RESOLVED as an ordinary resolution of the
shareholders of the Company, that:

 

		1.	the Amended Plan, as disclosed in the management information circular of the Company dated May 2, 2018, be and is hereby approved,
ratified and confirmed;

 

    	- 24 -

     

    

 

		2.	any one director or officer of the Company be and is hereby authorized and directed to do such things and to execute and deliver
all such instruments, deeds and documents, and any amendments thereto, as may be necessary or advisable in order to give effect
to the foregoing resolution.”

 

Shareholders may vote FOR or AGAINST the above resolution. The
Board has determined that the Amended Plan is in the best interests of the Company and its shareholders and recommends that Shareholders
vote FOR the foregoing resolution approving the Amended Plan.

 

The resolution regarding the approval of the Amended Plan must
be passed by the majority of the votes cast by shareholders present or represented by proxy who are entitled to vote at the Meeting.

 

General Matters

 

Management does not know of any other matters will come before
the Meeting other than those set forth above and in the Notice of Meeting, but if any other matters do arise, the person named
in the Proxy intends to vote on any poll, in accordance with his or her best judgement, exercising discretionary authority with
respect to amendments or variations of matters set forth in the Notice of Meeting and other matters which may properly come before
the Meeting or any adjournment of the Meeting.

 

ADDITIONAL INFORMATION

 

Additional information relating to the Company may be found
on SEDAR at www.sedar.com. Financial information about the Company is provided in the Company’s comparative annual
financial statements to December 31, 2017 a copy of which, together with the Management Discussion and Analysis thereon, can be
found on the Company’s SEDAR profile at www.sedar.com. Additional financial information
concerning the Company may be obtained by any securityholder of the Company free of charge by contacting the Company at 4420 West
Saanich Road, PO Box 24076, Victoria, British Columbia, V8Z 6N6, by telephone at 1-800-757-3536 or e-mail at invest@emerald.care.

 

    	- 25 -

     

    

 

BOARD APPROVAL

 

The contents of this Circular have been approved and its mailing
authorized by the directors of the Company.

 

DATED at Vancouver, British Columbia, the 2nd day of May, 2018.

 

ON BEHALF OF THE BOARD

 

	“Dr. Avtar Dhillon”	 
	Dr.
Avtar Dhillon 	 
	Executive Chairman	 

 

    	- 26 -

     

    

 

SCHEDULE “A”

 

EMERALD HEALTH THERAPEUTICS, INC.

CHARTER OF THE AUDIT COMMITTEE

 

1.                             PURPOSE
AND PRIMARY RESPONSIBILITY

 

1.1                           This
charter sets out the Audit Committee’s purpose, composition, member qualification, member
appointment and removal, responsibilities, operations, manner of reporting to the Board of Directors (the
“Board”) of Emerald Health Therapeutics, Inc. (the
“Company”), annual evaluation and compliance with this charter.

 

1.2                          
The primary responsibility of the Audit Committee is that of oversight of the financial reporting process on behalf of the
Board. This includes oversight responsibility for financial reporting and continuous disclosure, oversight of external audit
activities, oversight of financial risk and financial management control, and oversight responsibility for compliance with
tax and securities laws and regulations as well as whistle blowing procedures. The Audit Committee is also responsible for
the other matters as set out in this charter and/or such other matters as may be directed by the Board from time to time. The
Audit Committee should exercise continuous oversight of developments in these areas.

 

0.                             MEMBERSHIP

 

2.1                           The
majority of the members of the Audit Committee must be an independent director of the Company
as defined in sections 1.4 and 1.5 of National Instrument 52-110 – Audit Committees (“NI
52-110”). Should the Company become listed on a stock exchange, each member of the Audit Committee will also satisfy
the independence requirements of such exchange.

 

2.2                           The
Audit Committee will consist of at least three members, all of whom shall be financially literate, provided that an Audit
Committee member who is not financially literate may be appointed to the Audit Committee if such member becomes financially
literate within a reasonable period of time following his or her appointment. Upon listing on a senior stock exchange, if
required under the rules or policies of such exchange, the Audit Committee will consist of at least three members, all of
whom shall meet the experience and financial literacy requirements of such exchange and of NI 52-110.

 

2.3                           The
members of the Audit Committee will be appointed annually (and from time to time thereafter to fill vacancies on the Audit
Committee) by the Board. An Audit Committee member may be removed or replaced at any time at the discretion of the Board and
will cease to be a member of the Audit Committee on ceasing to be an independent director.

 

2.4                           The
Chair of the Audit Committee will be appointed by the Board.

 

1.                             AUTHORITY

 

3.1                           In
addition to all authority required to carry out the duties and responsibilities included in this charter, the Audit Committee
has specific authority to:

 

    

     

    

 

(a)            engage, set and
pay the compensation for independent counsel and other advisors as it determines necessary to carry out its duties and responsibilities,
and any such consultants or professional advisors so retained by the Audit Committee will report directly to the Audit Committee;

 

(b)            communicate directly
with management and any internal auditor, and with the external auditor without management involvement; and

 

(c)            incur ordinary
administrative expenses that are necessary or appropriate in carrying out its duties, which expenses will be paid for by the Company.

 

4.                             DUTIES AND RESPONSIBILITIES

 

4.1                           The duties and
responsibilities of the Audit Committee include:

 

(a)            recommending to
the Board the external auditor to be nominated by the Board;

 

(b)            recommending to
the Board the compensation of the external auditor to be paid by the Company in connection with (i) preparing and issuing the audit
report on the Company’s financial statements, and (ii) performing other audit, review or attestation services;

 

(c)            reviewing the external
auditor’s annual audit plan, fee schedule and any related services proposals (including meeting with the external auditor
to discuss any deviations from or changes to the original audit plan, as well as to ensure that no management restrictions have
been placed on the scope and extent of the audit examinations by the external auditor or the reporting of their findings to the
Audit Committee);

 

(d)            overseeing the
work of the external auditor;

 

(e)            ensuring that the
external auditor is independent by receiving a report annually from the external auditors with respect to their independence, such
report to include disclosure of all engagements (and fees related thereto) for non-audit services provided to Company;

 

(f)            ensuring that the
external auditor is in good standing with the Canadian Public Accountability Board by receiving, at least annually, a report by
the external auditor on the audit firm’s internal quality control processes and procedures, such report to include any material
issues raised by the most recent internal quality control review, or peer review, of the firm, or any governmental or professional
authorities of the firm within the preceding five years, and any steps taken to deal with such issues;

 

(g)            ensuring
that the external auditor meets the rotation requirements for partners and staff assigned to the Company’s annual audit
by receiving a report annually from the external auditors setting out the status of each professional with respect to the appropriate
regulatory rotation requirements and plans to transition new partners and staff onto the audit engagement as various audit team
members’ rotation periods expire;

 

(h)            reviewing
and discussing with management and the external auditor the annual audited and quarterly unaudited financial statements and related
Management Discussion and Analysis (“MD&A”), including the appropriateness of the Company’s accounting policies,
disclosures (including material transactions with related parties), reserves, key estimates and
judgements (including changes or variations thereto) and obtaining reasonable assurance that the financial statements are presented
fairly in accordance with IFRS and the MD&A is in compliance with appropriate regulatory requirements;

 

    	- 2 -

     

    

 

(i)            reviewing
and discussing with management and the external auditor major issues regarding accounting principles and financial statement presentation
including any significant changes in the selection or application of accounting principles to be observed in the preparation of
the financial statements of the Company and its subsidiaries;

 

(j)            reviewing
and discussing with management and the external auditor the external auditor’s written communications to the Audit Committee
in accordance with generally accepted auditing standards and other applicable regulatory requirements arising from the annual
audit and quarterly review engagements;

 

(k)           reviewing
and discussing with management and the external auditor all earnings press releases, as well as financial information and earnings
guidance provided to analysts and rating agencies prior to such information being disclosed;

 

(l)           reviewing
the external auditor’s report to the shareholders on the Company’s annual financial statements;

 

(m)          reporting
on and recommending to the Board the approval of the annual financial statements and the external auditor’s report on those
financial statements, the quarterly unaudited financial statements, and the related MD&A and press releases for such financial
statements, prior to the dissemination of these documents to shareholders, regulators, analysts and the public;

 

(n)           satisfying
itself on a regular basis through reports from management and related reports, if any, from the external auditors, that adequate
procedures are in place for the review of the Company’s disclosure of financial information extracted or derived from the
Company’s financial statements that such information is fairly presented;

 

(o)           overseeing
the adequacy of the Company’s system of internal accounting controls and obtaining from management and the external auditor
summaries and recommendations for improvement of such internal controls and processes, together with reviewing management’s
remediation of identified weaknesses;

 

(p)           reviewing
with management and the external auditors the integrity of disclosure controls and internal controls over financial reporting;

 

(q)           reviewing
and monitoring the processes in place to identify and manage the principal risks that could impact the financial reporting of
the Company and assessing, as part of its internal controls responsibility, the effectiveness of the over-all process for identifying
principal business risks and report thereon to the Board;

 

(r)           satisfying
itself that management has developed and implemented a system to ensure that the Company meets its continuous disclosure obligations
through the receipt of regular reports from management and the Company’s legal advisors on the functioning of the disclosure
compliance system, (including any significant instances of non-compliance with such system) in order to satisfy itself that such
system may be reasonably relied upon;

 

    	- 3 -

     

    

 

(s)           resolving disputes
between management and the external auditor regarding financial reporting;

 

(t)            establishing procedures
for:

 

(i)             the receipt, retention
and treatment of complaints received by the Company from employees and others regarding accounting, internal accounting controls
or auditing matters and questionable practices relating thereto; and

 

(ii)           the confidential,
anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

 

(u)           reviewing and approving
the Company’s hiring policies with respect to partners or employees (or former partners or employees) of either a former
or the present external auditor;

 

(v)           pre-approving all
non-audit services to be provided to the Company or any subsidiaries by the Company’s external auditor (the Chair of the
Audit Committee has the authority to pre-approve in between regularly scheduled Audit Committee meetings any non-audit service
of less than $10,000, however such approval will be presented to the Audit Committee at the next scheduled meeting for formal approval);

 

(w)           overseeing compliance
with regulatory authority requirements for disclosure of external auditor services and Audit Committee activities;

 

(x)           conducting, on
an annual basis, a review of the risks associated with the operation of the business of the Company addressing such matters as,
without limitation, the following:

 

(i)       succession and
human resource risks

 

(ii)       environmental
risks,

 

(iii)       regulatory compliance
risks,

 

(iv)       and any other
major aspect of operations as would warrant a risk assessment.

 

(y)           establishing procedures for:

 

(i)       reviewing the adequacy
of the Company’s insurance coverage, including the Directors’ and Officers’ insurance coverage;

 

(ii)       reviewing activities,
organizational structure, and qualifications of the Chief Financial Officer (“CFO”) and the staff in the financial
reporting area and ensuring that matters related to succession planning within the Company are raised for consideration at the
Board;

 

    	- 4 -

     

    

 

(iii)          obtaining reasonable
assurance as to the integrity of the Chief Executive Officer (“CEO”) and other senior management and that the CEO and
other senior management strive to create a culture of integrity throughout the Company;

 

(iv)          reviewing fraud
prevention policies and programs, and monitoring their implementation;

 

(v)           reviewing regular
reports from management and others (e.g., external auditors, legal counsel) with respect to the Company’s compliance with
laws and regulations having a material impact on the financial statements including:

 

(A)          Tax and financial
reporting laws and regulations;

 

(B)          Legal
withholding requirements;

 

(C)          Environmental protection
laws and regulations; and

 

(D)          Other laws and
regulations which expose directors to liability.

 

4.2                          A regular part
of Audit Committee meetings involves the appropriate orientation of new members as well as the continuous education of all members.
Items to be discussed include specific business issues as well as new accounting and securities legislation that may impact the
organization. The Chair of the Audit Committee will regularly canvass the Audit Committee members for continuous education needs
and in conjunction with the Board education program, arrange for such education to be provided to the Audit Committee on a timely
basis.

 

4.3                          On an annual basis
the Audit Committee shall review and assess the adequacy of this charter taking into account all applicable legislative and regulatory
requirements as well as any best practice guidelines recommended by regulators or stock exchanges with whom the Company has a reporting
relationship and, if appropriate, recommend changes to the Audit Committee charter to the Board for its approval.

 

5.                           MEETINGS

 

5.1                         The quorum for
a meeting of the Audit Committee is a majority of the members of the Audit Committee.

 

5.2                         The Chair of the
Audit Committee shall be responsible for leadership of the Audit Committee, including scheduling and presiding over meetings, preparing
agendas, overseeing the preparation of briefing documents to circulate during the meetings as well as pre-meeting materials, and
making regular reports to the Board. The Chair of the Audit Committee will also maintain regular liaison with the CEO, CFO, and
the lead external audit partner.

 

5.3                         The Audit Committee
will meet in camera separately with each of the CEO and the CFO of the Company at least annually to review the financial affairs
of the Company.

 

5.4                         The Audit Committee
will meet with the external auditor of the Company in camera at least once each year, at such time(s) as it deems appropriate,
to review the external auditor’s examination and report.

 

    	- 5 -

     

    

 

5.5                            The external auditor
must be given reasonable notice of, and has the right to appear before and to be heard at, each meeting of the Audit Committee.

 

5.6                            Each of the Chair
of the Audit Committee, members of the Audit Committee, Chair of the Board, external auditor, CEO, CFO or secretary shall be entitled
to request that the Chair of the Audit Committee call a meeting which shall be held within 48 hours of receipt of such request
to consider any matter that such individual believes should be brought to the attention of the Board or the shareholders.

 

5.7                            The Audit Committee
will meet either in person or by phone on an as needed basis, and in any event not less than a minimum of three times per year.

 

6.                             REPORTS

 

6.1                            The Audit Committee
will report to the Board regarding the Audit Committee’s examinations and recommendations, and in respect of each meeting
held. The report to the Board will be provided in the form of:

 

(a)          
  slides to be included in the slide deck being provided by management for the Board meeting;

 

(b)      
      a copy of the Minutes of the Audit Committee meeting in question; and

 

(c)       
      any recommendations of the Audit Committee to the Board.

 

6.2                           The Audit Committee
will report its activities to the Board to be incorporated as a part of the minutes of the Board meeting at which those activities
are reported.

 

7.                             MINUTES

 

7.1                           The Audit Committee
will maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board.

 

8.                             ANNUAL PERFORMANCE
EVALUATION

 

8.1                           The Board will
conduct an annual performance evaluation of the Audit Committee, taking into account the Charter, to determine the effectiveness
of the Committee.

 

    	- 6 -

     

    

 

REPORT CARD OF THE AUDIT COMMITTEE 

 

To:     The Board of
Directors of Emerald Health Therapeutics, Inc.

 

Date: [month] [day], 201X

 

The following is our report on actions taken against
the requirements of the Audit Committee Charter.

 

The Audit Committee met in person or by phone_________times
during [year].

 

	Task (see body of Policy for full details on task)	 	Action Taken (Y/N)
	Recommending the external auditor to be nominated by the Board.	 	 
	 	 	 
	Recommending the compensation to be paid to the external auditor.	 	 
	 	 	 
	Review the external auditor’s annual audit plan, fee schedule and any related services proposals.	 	 
	 	 	 
	Oversee the work of the external auditor	 	 
	 	 	 
	Ensure that the external auditor is independent.	 	 
	 	 	 
	Ensure that the external auditor is in good standing with the Canadian Public Accountability Board.	 	 
	 	 	 
	Ensure that the external auditor meets the rotation requirements for partners and staff assigned to the Company’s annual audit.	 	 
	 	 	 
	Review and discuss with management and the external auditor the annual audited and quarterly unaudited financial statements and related Management Discussion and Analysis (“MD&A”).	 	 
	 	 	 
	Review and discuss with management and the external auditor major issues regarding accounting principles and financial statement presentation.	 	 
	 	 	 
	Review and discuss with management and the external auditor the external auditor’s written communications to the Audit Committee.	 	 
	 	 	 
	Review and discuss with management and the external auditor all earnings press releases, as well as financial information and earnings guidance provided to analysts and rating agencies prior to release.	 	 
	 	 	 
	Review the external auditor’s report to the shareholders on the Company’s annual financial statements.	 	 

 

    	- 7 -

     

    

 

	Recommend the approval of the annual financial statements and the external auditor’s report on those financial statements, quarterly unaudited financial statements and elated MD&A and press releases prior dissemination.	 	 
	 	 	 
	Satisfy itself that adequate procedures are in place for the review of the Company’s disclosure of financial information.	 	 
	 	 	 
	Oversee the adequacy of the Company’s system of internal accounting controls.	 	 
	 	 	 
	Review with management and the external auditors the integrity of disclosure controls and internal controls over financial reporting.	 	 
	 	 	 
	Review and monitor the processes in place to identify and manage the principal risks that could impact the financial reporting of the Company.	 	 
	 	 	 
	Satisfy itself that management has developed and implemented a system to ensure that the Company meets its continuous disclosure obligations.	 	 
	 	 	 
	Resolve disputes between management and the external auditor regarding financial reporting.	 	 
	 	 	 
	Establish procedures for complaints and anonymous submissions to be received by the Company from employees and others regarding accounting, internal accounting controls or auditing matters.	 	 
	 	 	 
	Review the Company’s hiring policies with respect to current or former partners or employees of either the current or former auditor.	 	 
	 	 	 
	Pre-approve all non-audit services to be provided to the Company or any subsidiaries by the Company’s external auditor.	 	 
	 	 	 
	Oversee compliance with regulatory authority requirements for disclosure of external auditor services and Audit Committee activities.	 	 
	 	 	 
	Conduct a review of the risks associated with the operation of the business of the Company.	 	 
	 	 	 
	Establish procedures for:	 	 
	 	 	 
	·      reviewing the adequacy of the Company’s insurance coverage, including the Directors’ and Officers’ insurance coverage;	 	 
	 	 	 
	·      reviewing the Chief Financial Officer (“CFO”) and the staff in the financial reporting area and addressing succession planning;	 	 
	 	 	 
	·      determining if the CEO and other senior management strive to create a culture of integrity throughout the Company; 	 	 

 

    	- 8 -

     

    

 

	·      reviewing fraud prevention policies and programs, and monitoring their implementation;	 	 
	 	 	 
	·      reviewing reports from management and others with respect to compliance with laws and regulations having a material impact on the financial statements.	 	 
	 	 	 
	Review and assess the adequacy of this Charter.	 	 

 

    	- 9 -Exhibit 4.7

 

Form 51-102F3

MATERIAL CHANGE REPORT

 

		Item 1.	Name and Address of Reporting Issuer

 

Emerald Health Therapeutics, Inc. (the “Company”)

PO Box 24076, 4420 West Saanich Road

Victoria, British Columbia V8Z 7E7

 

		Item 2.	Date of Material Change

 

January 3, 2018

 

		Item 3.	News Release

 

A news release was disseminated on
January 3, 2018 through GlobeNewswire and subsequently filed on SEDAR.

 

		Item 4.	Summary of Material Changes

 

The Company announced that it had
entered into a binding term sheet with a single Canadian institutional accredited investor (the “Investor”) pursuant
to which the Investor has agreed, subject to certain customary conditions, to purchase 3,000,000 units of the Company (the “Units”)
at a price of $5.00 per Unit for total gross proceeds of $15,000,000 (the “Offering”). The securities forming the Units
will be qualified under a shelf prospectus supplement to be filed by Emerald prior to closing.

 

The Investor has also agreed to purchase
from Emerald Health Sciences Inc. (“Sciences”), a control person of the Company, 2,000,000 Common Shares held by Sciences
at a price of $5.00 per share (the “Secondary Sale”). The Secondary Sale will close concurrently with the closing of
the Offering.

 

		Item 5.	Full Description of Material Change

 

The Company announced that it had
entered into a binding term sheet with the Investor under which the Investor has agreed, subject to certain customary conditions,
to purchase 3,000,000 Units at a price of $5.00 per Unit for total gross proceeds of $15,000,000. The securities forming the Units
will be qualified under a shelf prospectus supplement to be filed by Emerald prior to closing.

 

Each Unit will consist of one common
share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the Investor to
acquire one common share of the Company (a “Warrant Share”) at a price of $6.00 per Warrant Share for a period of 36
months following the closing of the Offering. In the event that the closing sale price of the Company’s common shares (the
“Common Shares”) on the TSX Venture Exchange is greater than $8.00 per Common Share for a period of 10 consecutive
trading days at any time after the closing of the Offering, the Company may accelerate the expiry date of the Warrants by giving
notice to the Investor and in such case the Warrants will expire on the 30th day after the date on which such notice is given by
the Company.

 

     

     

    

 

The Investor has also agreed to purchase
from Sciences, a control person of the Company, 2,000,000 Common Shares held by Sciences at a price of $5.00 per share (the “Secondary
Sale”). The Secondary Sale will close concurrently with the closing of the Offering.

 

The Company intends to use the net
proceeds of the Offering for its production and R&D-related growth plans, working capital and general corporate purposes.

 

The Units will be offered by way
of a shelf prospectus supplement to be filed in all of the provinces of Canada, except Quebec, pursuant to National Instrument
44-101 - Short Form Prospectus Distributions. The Secondary Sale will be completed pursuant to a Form 45-102F1 Notice of Intention
to Distribute Securities under Section 2.8 of NI 45-102 Resale of Securities filed by Sciences on January 3, 2018.

 

		Item 6.	Reliance on subsection 7.1(2) of National Instrument 51-102

 

Not applicable.

 

		Item 7.	Omitted Information

 

Not applicable.

 

		Item 8.	Executive Officer

 

For further information, please contact:

Chris Wagner

Chief Executive Officer

Telephone: 1.800.757.3536 ext.720

 

		Item 9.	Date of Report

 

January 4, 2018

 

    	 	- 2 -

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