Emerald Health Therapeutics, Inc. has entered into a license agreement (the "Agreement") with FlowerPod LLC ("FP") providing FP with the exclusive use of certain Emerald patented technology for developing and marketing cannabis related products for use in all US states and other key geographies where adult use and/or medical cannabis is legal. The initial prototype product designed by Emerald, utilizing its Defined DoseTM expertise, has been refined over the last 15 months through a collaboration between FP and Emerald. About 50% of cannabis consumers are largely influenced by the convenience of the consumption form when choosing a cannabis product, qualifying it as a top-5 influencer. This soon-to-launch specialty product targets cannabis flower users and is expected to provide a more convenient method of consuming whole spectrum dried flower cannabis and ensure a consistent amount of active ingredient with every use of the product. This is expected to provide users with greater predictability and control of their cannabis consumption. Given ongoing commercial and launch planning activities, full details of the product and intellectual property will be disclosed when FP commercially launches this new product, anticipated in fourth quarter of 2021. FP intends to bring this new product to market by initially partnering with leading licensed growers and distributors in the Northeast US. Based on the almost 50% greater population as well as legal recreational or medical cannabis use permitted in the states of this region, the Northeast US alone has the potential to exceed legal cannabis sales in Canada. Pursuant to the Agreement, FP has the right to use Emerald's intellectual property to manufacture and sell related products in all US states where adult use and/or medical cannabis is legal, with the option to expand globally (excluding select medical markets including Canada) upon meeting certain milestones. Emerald has also provided FP with a loan of USD 350,000 that is repayable within two years with interest at a rate of 5%. In exchange, Emerald receives a 19% equity ownership position in FP and will also receive monthly R&D and IP license payments from FP.