10 exciting small cap shares to watch

I think that the Australian share market is home to a good number of small companies with the potential to grow significantly in the future.

While not all these companies are what I would consider to be investment grade just yet, they are certainly worth keeping an eye on.

Here are ten that I’ll be watching:

Auscann Group Holdings Ltd (ASX: AC8)

As AusCann has all the necessary licenses to grow, research, and manufacture medicinal cannabis products, I think it could be a big winner from the recent decision by the government to allow the export of the raw material. Another bonus is its strategic alliance with the world’s biggest cannabis company, Canopy Growth Corp.

Animoca Brands Corporation Ltd (ASX: AB1)

Animoca Brands is a developer and marketer of mobile games and apps for smartphones and tablets globally. It recently announced the launch of Tokyo Casino Project in the App Store and Google Play store. This game is an attempt to tap into the lucrative market that Aristocrat Leisure Limited (ASX: ALL) is profiting greatly in.

Argosy Minerals Limited (ASX: AGY)

This up and coming lithium miner is one to watch thanks to the enormous potential of its Rincon lithium project in Argentina. The company is close to commencing production and has a number of Chinese companies from the lithium battery sector interested in off-take or other value-adding commercial agreements.

Bubs Australia Ltd (ASX: BUB)

While I think this goats milk infant formula and baby food company’s shares are overvalued at the moment, I believe it is well worth keeping a close eye on Bubs. If the company can win a decent share of the lucrative Chinese infant formula market, it could lead to bumper profit growth.

Cynata Therapeutics Ltd (ASX: CYP)

I’m excited by the potential of this stem cell and regenerative medicine company’s Cymerus technology. It can produce an unlimited number of high quality stem cells at a low cost. These stem cells can then be used to treat a number of diseases including Graft versus Host Disease.

ELMO Software Ltd (ASX: ELO)

Since listing on the ASX this cloud-based talent management software solutions provider has smashed expectations and its prospectus forecasts. I believe the strong demand it is experiencing and the large addressable market make it worth considering today.

Livetiles Ltd (ASX: LVT)

LiveTiles is a fast-growing digital workplace platform provider with its eyes firmly fixed on the massive artificial intelligence market. The company recently signed AI-related deals with tech giant Microsoft and the Clean Energy Smart Manufacturing Innovation Institute.

Swift Networks Group Ltd (ASX: SW1)

This entertainment and telecommunication services company provides fully integrated solutions for the resources, hospitality, lifestyle village, and aged care accommodation sectors. I believe there is a huge opportunity for the company in the aged care sector due to Australia’s ageing population.

Volpara Health Technologies Ltd (ASX: VHT)

This digital health company’s technology enables personalised, high quality breast cancer screening based on automated, objective measurements of breast density, compression and radiation dose. Annual recurring revenues are expected to exceed its full-year 200% growth target this year.

Zenitas Healthcare Ltd (ASX: ZNT)

Zenitas is a growing home care and health services company which listed on the ASX last year. With the National Healthcare Reform aiming to push the burden of healthcare services from hospitals into primary care, I believe Zenitas is in a great position to profit.

I ran out of space in my top ten list, but these three exciting up and coming shares would also have been in there if I had space.

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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 and has recommended ELMOSFTWRE FPO. The Motley Fool Australia owns shares of VOLPARA FPO NZ. The Motley Fool Australia has recommended Zenitas Healthcare Ltd. 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 Scott Phillips.

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