Shares of Canadian marijuana company Canopy Growth were jumping on Tuesday after the company revealed that it expects to be profitable by the second half of 2022.

The company said that over the next 12-18 months it expects to lower its costs by as much as C$200 million. This is thanks in part to optimism about the new Biden administration finally legalizing marijuana.

“We are building a track record of winning in our core markets, while also accelerating our U.S. growth strategy with the momentum building behind the promising cannabis reform in the U.S.,” said Canopy Growth CEO David Klein.

The company had reported its third quarter revenue was C$153 million, a jump of 23% from a year ago. This was driven by higher sales of recreational products in Canada and medical cannabis in international markets.

Canopy reported a loss of C$829 million, or C$2.43 a share. This is compared to a loss of C$109.6 million, or 26 cents per share, a year ago.

“We anticipate that this legislation will include comprehensive reform to ensure restorative justice, protect public health and implement responsible taxation while ending cannabis prohibition,” said Klein in an earnings call on the Biden administration.

Owen Bennett, an equity analyst at Jefferies Group believes that Canopy Growth is continuing to position itself as the leading cannabis company in the U.S for near-term legislative reform.

Bennett also noted that the company’s Martha Stewart CBD products line is outselling 94% of all U.S. CBD brands just four months after launch.

Looking ahead, Canopy Growth expects compound annual revenue will rise between 40% and 50% from fiscal years 2022 to 2024. Additionally, the company expects to achieve positive operating cash flow in fiscal year 2023 and positive free cash flow for the fiscal year 2024.

Shares of Canopy Growth have gained over 150% in the past year.

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