I think that Australia is home to a great number of small-cap shares with significant growth potential.
Three small-caps which I think are worth keeping a very close eye on are listed below. Here's why they have caught my eye:
Bubs Australia Ltd (ASX: BUB)
This infant formula and baby food company aims to take on market darling a2 Milk Company Ltd (Australia) (ASX: A2M) in China. It recently signed agreements with Brilite Nutritionals and NetEase Kaola.com that will significantly expand the availability of its products in the lucrative market. The deal with Brilite is expected to see its products hit the shelves of over 2,000 mother and baby stores. The agreement with Kaola.com will see its products made available to over 15 million users of its cross-border e-commerce platform. Approximately 42% of which have used the platform to purchase baby products.
Fastbrick Robotics Ltd (ASX: FBR)
Fastbrick Robotics is the company behind the Hadrian-X bricklaying robot. The impressive piece of technology can lay 1,000 standard brick equivalents per hour, compared to 400 bricks per day by the average Australian bricklayer. Yesterday the company announced that it has entered into a memorandum of understanding with US-giant Caterpillar Inc. to discuss and develop a potential framework for collaboration. Ultimately, the two parties will look into how best to offer the technology to Caterpillar's construction customers.
SKY and Space Global Ltd (ASX: SAS)
Last month the global communications infrastructure company launched its first three nano-satellites into space. The 3 Diamonds launch is the first step in the company's bold plan of delivering affordable mobile coverage to an estimated four billion people that are currently without it. Management has previously estimated that a full Equatorial constellation of 200 of its nano-satellites has the potential to generate between US$600 million and US$1 billion in annual revenues. Pleasingly, its satellites are well-positioned in orbit and functioning according to plan.
Foolish takeaway
Whilst I feel it is a touch soon to invest in these three companies, I continue to keep a close eye on their progress and suggest fellow investors do likewise.
