The Maliseet First Nation in New Brunswick is working with an American company to build a medical marijuana research and treatment facility.
The X-Change Corporation said the First Nation community will help the company develop a compound covering up to 400 hectares of first nation land.
The group said in the initial phase four hectares of land will be used to grow marijuana.
It said the farming part of the operation could eventually grow to also include hemp and cover more than 150 hectares. The plan also includes a hospital, research laboratory and a treatment centre with accommodations for patients.
So far X-change is not releasing the financial details of the deal.
In a press release, it said the project is still in the planning stages.
The company calls itself a "U.S. boutique company whose niche is hemp extract-based cosmeceutical and nutraceutical solutions."
Paul Pyers, who is representing the Maliseet Nation in the project, was not available for comment.
Those who wish to use medical marijuana in Canada must apply for a permit from the government in order to either grow it themselves or buy it from a single government grower.
A proposal released by Health Canada in December would treat medical marijuana more like medicine and effectively commercialize its production and distribution.