March 1, 2013

Q&A With Robert Kane on US Firm’s Plans for Cannabis R&D, Treatment Facility in Canada

Photo of Robert Kane of The X-Change Corp.

A US medical marijuana company is moving full speed ahead with plans to build a first-of-its-kind cannabis campus that will include a treatment center, hospital facilities, a lab for research and product development and a cultivation site that will grow both MMJ and hemp.

The X-Change Corp. – one of the few publicly traded companies in the medical cannabis space (ticker symbol XCHC) – hopes to one day treat patients from around the world at the facility, offering cannabis-based remedies for their ailments.

How is this possible, given that marijuana is still illegal federally and state MMJ laws don’t cover these types of operations? The X-Change Corp. plans to build the campus on a big swath of land in New Brunswick, Canada, belonging to the Maliseet First Nation, the indigenous people of the region. The tribe – which has its own government and laws – has agreed to partner with the firm and the two sides are now hammering out details, including a projected timeline and the overall scope of the project. The partnership allows The X-Change Corp. to avoid the legal issues that prevent it from building such a facility elsewhere in Canada or the US – though there are still many challenges involved.

The X-Change Corp. actually bought the rights to the project from another US company, Cannabis Science, which planned to move forward with the development last year but has been unable to do so because of competing priorities.

Robert Kane, who is president of The X-Change Corp. and also handles investor relations for Cannabis Science, spoke with Medical Marijuana Business Daily about the project and what it means for the future of the marijuana business. Following are excerpts of that conversation:

On why this is important for the medical cannabis industry…

A large portion of the information we as an industry have about the medical benefits of cannabis is anecdotal. There have been global studies before, but in general this type of data is lacking. In our opinion, this project is going to progress the industry because we’ll hopefully get scientific results from the research and development conducted at this facility. We’ll have a place to actually test and get quality research.

On partnering with the Maliseet First Nation…

The reason we decided to go with them is that they are cannabis-friendly and understand what the world needs at this point. And because of their legal framework, we can do this in a legally compliant manner.

On what the project includes…

There are several things that make this project unique. The Maliseet Nation dedicated a large amount of land to open a legal cannabis growing facility, clinical laboratory, manufacturing and production facility and treatment center. The goal of this joint venture is to facilitate medical cannabis and hemp research, clinical trials and treatments, among numerous other opportunities. There are plans to create a commercial kitchen and other production facilities for formulations and products. We’ll have a research and development facility focusing on cannabis extract-based formulations that will be able to treat people with health issues such as cancer, PTSD, asthma, Alzheimer’s and a wide range of other conditions. We will treat them in a clinical fashion and collect data that can be used to hopefully progress the science behind cannabis-based medicine and to create quality standards.

On the types of products the facility will develop…

It’ll be a full range of cosmeceutical and nutraceutical products. The whole point of opening up is to see if we can come up with a suppository or oral gel cap or topical cream. It could be a sunblock or a shampoo or a cosmetic product like makeup. We’ll have a variety of different formulations – such as an over-the-counter hemp formulation – so we can be in all markets to some degree without facing compliance issues. We’ll also develop a cannabis-based extract formulation for states and countries where medical cannabis is legal. And we do fully see in our vision that the US will be one of these countries.

On what this means for XCHC financially and from a long-term strategic perspective…

First of all it creates a revenue stream for over-the-counter products. Our goal is to create enough revenues to hit positive earnings per share. We also want to add a few more products to our product line, primarily personal care products like shampoos and creams. This project will allow us to produce a lot of new products through research and development. We eventually could open our own line of edibles.

On how X-Change Corp. became involved in this partnership…

Cannabis Science actually started this project last year, and we purchased it from them. They sold it to us because they were progressing faster than expected in other areas of the company, so there was a conflict of projects.

On the project’s timeline…

We’re really just getting everything started now. The agreement was just finalized so there is going to be some time dedicated for proper development of this facility. There is also going to be time to finalize all of the legal compliance that is required. Our teams are working relentlessly around the clock to get everything completed in an efficient manner. We will announce progress as it is made.

On who can get treated at the facility…

We are aware of having to be fully compliant with international law. With that said, if you have a condition that we could treat at this facility then you would be able to travel there and get care as long as it is in accordance with your country’s law and international law.


  1. Way to go, Robert. I can say I knew you when…

    We are hoping to open our dispensary in mid-May. Will send an invitation to our grand opening. Hope you will attend. My best regards, Walt

  2. It is too bad you are so far away.

  3. Very interesting, concentrates will be the future of cannabinoid medicine,BUT, first, we need a standardized method of identification more in-depth than AK-47 or Green Crack, (I)(S)(hybrid ), something on the order of the ever famous & popular “Dewey decimal system” . Research is critical, but we have to know we are comparing apples to apples so to speak

  4. Daniel J. Prendergast

    This is the job of my dreams!

  5. ^@Mike G.
    We are testing for 6 cannabinoids, terpenes, and residual solvents in concentrates. We use analytical equipment that does compare apples to apples. Herbal Synergy is now the official testing company of High Times as we have proven to be the most reliable in our testing and delivery.

  6. My first basal cell carcinoma appeared over 30 years ago under my right eye. The dermatologist scraped it off
    and radiated it for good measure. Over 100 other basal and squamous cell cancers have been treated since.
    Several years ago, a tenacious cancer appeared within the top of my right ear. The dermatologist treated it
    many times before a Mohs surgeon removed the top of my ear in three stages.
    In 2005, the proctologist found cancer in six of nine prostate biopsies. I received 43 prostate radiations after
    the aorta valve in my heart was replaced with a pig’s valve for a heart murmur.
    As I recovered from the open-heart surgery, I lost the central vision of my right eye. The heart surgeon told me
    a tiny bit of plaque most likely got loose as a result of the surgery, causing a central retinal artery occlusion. A
    vascular surgeon cleaned my right carotid in case it was the source of plaque.
    In 2010, a full-body Scan showed a 22 x 31 mm ground-glass opacity and an 11 x 13 mm nodule in the central
    lobe of my right lung. Biopsies indicated adenocarcinoma. The pulmonologist, oncologist and thoracic surgeon
    agreed the “gold standard of treatment” was removal of that lobe.
    After several more scans showed the cancer was enlarging, and after viewing the complexity of lobe removal
    (http://, I chose radiation treatment,
    thinking I’d have a better chance of surviving than going under the knife again. 24 radiations and 12 more
    scans confirmed that the left central lobe was well zapped.
    In the Fall of 2011, cancers were appearing in other lung lobes and another skin cancer was removed from the
    back of my right ear. A friend suggested I watch Simpson’s documentary. Since I was in between the scans
    scheduled to see when and where the next zapping would be done, I thought “what have I got to lose?”
    So, after receiving a State Medical Cannabis permit, I made some oil and consumed the suggested 2 ounce
    dose by April. No “joint” smoking was involved. I was able to function normally and my children were unaware
    of my treatment until we told them in March.
    Recent CT scans, X rays, Echo Cardiograms, EKG’s, carotid and aorta scans, blood tests, heart monitor
    test, and physical exams indicated I was free of cancer. Occasional skin cancers are now treated topically with
    the oil as they appear. I am again able to enjoy scuba diving, racquetball and water skiing.
    Obviously, I don’t know how this will all turn out. But I am reminded of Rick Simpson’s statements that the
    “healing powers of cannabis oil do not stop at cancer”. He said he not seen any disease that cannabis oil
    couldn’t cure, including cardiovascular disease, diabetes, Crohn’s disease, arthritis, multiple sclerosis, pain
    disorders, mental disorders, etc.
    Over-dose of many medicines, even aspirin, can be fatal. If one takes too much cannabis oil, the effect wears
    off quickly and no harm is done. I have not heard of anyone dying from its use and I have not found it to be at
    all addictive.
    Although my self-administered treatment was unpleasant during the tolerance-building stage, it sure was
    preferable to the agony, costs and adverse long-term effects of surgical, chemical or radiation alternatives.
    Related Films: “WHAT IF CANNABIS CURED CANCER” (49‘ ) and “RUN FROM THE CURE” ( 58’ ).

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