Stockwell previously directed Into the Blue, Blue Crush and Crazy Beautiful. The film starts shooting July 2 in Vancouver.
The film stars Chris Marquette and Aaron Yoo with more cast to be announced soon.
The teen comedy, based on a true story from Rolling Stone magazine, is about a high-school drop-out who becomes a multi-million-dollar marijuana mogul.
Ross Dinerstein and Bobby Schwartz of Eleven Eleven will produce with John Stockwell and Nicole Rocklin.
Dinerstein said: 'John Stockwell is a tremendous filmmaker with a great track record with fact based films.'
Jamie Carmichael, President of ContentFilm International, added: 'This is going to be a really commercial, high concept film from a great creative team. We're delighted to continue working with Eleven Eleven and to work with John Stockwell on Kid Cannabis.'