Canopy Growth (NASDAQ:CGC) stock is in the red today but still up more than 130% during the past month. This morning, the cannabis company filed a new press release concerning its upcoming special meeting of stockholders on April 12.

Two proposals will be voted on during the meeting. The first proposal seeks approval for authorizing and issuing an “unlimited number of a new class of non-voting and non-participating exchangeable shares in the capital of Canopy Growth.” These shares are referenced as exchangeable shares.

The second proposal seeks to allow for the conversion of one share of CGC common stock into one exchangeable share. This conversion will be at the option of the shareholder at any time.

CGC Stock: Canopy to Hold Special Meeting on April 12

Institutional Shareholder Services (ISS), a proxy advisory firm, has recommended Canopy shareholders approve both proposals.

“Support for this proposal is warranted,” said the ISS. “Although approval of this proposal would create an additional class of non-voting securities, the company determined that this proposal will help it and its shareholders remain compliant with applicable U.S. federal law.”

Canopy wants to create a new class of shares to represent its U.S. business. Last October, it created holding company Canopy USA, which owns all of Canopy’s U.S. cannabis investments.

Upon the approval of the first proposal, Canopy USA will be able to exercise its rights and acquire Acreage Holdings (OTCMKTS:ACRHF), Mountain High Products, Wana Wellness and The Cima Group. Once Canopy USA completes an acquisition of any of these names, Canopy will deconsolidate Canopy USA from its financial statements while having a non-controlling interest in the company.

Canopy wants a separate class of U.S. shares in order to generate value before and if cannabis is legalized on a federal basis in the United States. That would give it a head start once the controversial substance receives full federal legalization. Canopy also expects to leverage revenue and cost-synergy benefits with Canopy USA.

According to MJBizDaily, the U.S. retail cannabis market is expected to be worth as much as $50 billion by 2026.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.