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These 3 small cap shares zoomed higher today

The market has thankfully bounced back from yesterday’s decline with a solid move higher on Wednesday.

Three small cap shares that have produced even stronger gains than the market are listed below. Here’s what made them zoom higher:

The Hydroponics Company Ltd (ASX: THC) share price is up almost 8% to 77 cents. As well as gaining a boost from investors returning to risk assets again today, this medicinal cannabis company put out a promising announcement. According to the release, the company advised that it has completed its visit to several medicinal cannabis clinics in Canada and will now take what it has learned and replicate the model in Australia. The first medicinal cannabis clinic is expected to open in the second quarter of 2018. I think this is an interesting development and could potentially give it a first-mover advantage if it is a success.

The Volpara Health Technologies Ltd (ASX: VHT) share price is up 15% to 77 cents following the release of an investor update from the digital healthcare company. According to the update, total contract value (TCV) added in January was NZ$1.2 million, up 400% on the prior corresponding period. As a result, annual recurring revenue (ARR) has increased to over NZ$3 million, from NZ$1.1m at the end of FY 2017. Management believes this puts the company well on track to exceed its 200% ARR growth target for FY 2018 and I agree. While its shares are by no means cheap, I do think Volpara is well worth a closer look.

The Wellard Ltd (ASX: WLD) share price is up 3.5% to 15 cents. This morning the agribusiness company released its half-year result which revealed a first-half net loss of $7.5 million. This loss was, however, a big improvement on the prior corresponding period when it posted a loss of $17.9 million and came despite the fact that revenue was down 42% on the first-half of FY 2017. While management doesn’t expect trading conditions to improve in the second-half, it is pleased with the early success of its cost cutting program. I would stay clear of Wellard until it is consistently growing its profits.

Instead of buying Wellard's shares I would be buying these exciting small cap shares that are growing at a rapid rate.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of VOLPARA FPO NZ. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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