Emerald Health Therapeutics, Inc, Emerald Health Sciences, Inc. and DMG Blockchain Solutions Inc. have completed a letter of intent to form a joint venture, to be named CannaChain Technologies ("Cannachain"), to develop a foundational blockchain-based supply chain management system and e-commerce marketplace for the legal cannabis industry. From Licensed Producers, through testing, distribution and other steps, to the consumer, the cannabis supply chain includes many touchpoints. CannaChain's supply chain management system platform will aim to provide total transparency and assurances for end consumers about where a cannabis product came from and regarding an array of related attributes.

The platform will also assist in ensuring adherence to Health Canada reporting requirements. By logging each step along the supply chain on the blockchain - a decentralized, timestamped, and unhackable digital ledger - this ground-breaking platform is expected to provide an irrefutable record outlining the journey the product has made, from beginning to end. In this joint venture, Emerald would provide its expertise and relationships as one of the earliest Canadian Licensed Producers under Access to Cannabis for Medical Purposes Regulations.

DMG Blockchain Solutions, a blockchain supply chain management solution developer and leading crypto mining hosting provider, would build and deploy a blockchain supply chain management solution designed to meet the challenges and opportunities of the cannabis industry. The Cannachain solution is intended to provide extensive plant, growing, third-party testing, and handling data, and offer enhanced trust of origin, quality, and safety based on blockchain's ability to maintain immutable records as cannabis products flow from seed-to-sale through the supply chain. The solution would serve relevant stakeholders including producers, distributors, shippers, government agencies, and consumers.