The Wahgoshig First Nation tribe in the Canadian province of Ontario has inked an agreement to start a medical marijuana grow on its reservation.
The deal represents a significant economic development investment for the tribe and provides critical funding for its partner in the agreement, DelShen Therapeutics, to expand its medical marijuana operations.
Under the agreement, the tribe will convert a former forestry operation into a pharmaceutical cannabis grow facility, according to a press release. The operation will cost about $13.5 million, with the Wahgoshig contributing about $1.5 million of the cost in the form of convertible debentures.
The partnership between the First Nation and DelShen is expected to create about 30 jobs initially and 100 jobs over the long-term. The company is still awaiting its final license for the project.
Although medical marijuana has long been legal in Canada, few tribes have gotten involved in the industry.
In 2014, the Penticton Indian Band in British Columbia announced that it was developing a growing operation, according to Turtle Island News.
In 2013, the Tobique First Nation in New Brunswick announced that it was working with a Colorado Springs company to build a medical marijuana research and treatment facility.