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Why these 3 small cap shares are storming higher today

It certainly has been a positive day of trade on the ASX today.

While large cap shares such as Alumina Limited (ASX: AWC) and Rio Tinto Limited (ASX: RIO) may take the headlines after posting strong gains today, there have been some equally strong gains at the small end of the market.

Here are three small caps climbing higher on Thursday:

The Admedus Ltd (ASX: AHZ) share price is up 9.5% to 34.5 cents after the medical device company advised that it has submitted several new provisional IP applications in the United States for further development of its novel Transcatheter Aortic Valve Replacement (TAVR) device. The components have been designed to complement the Admedus single piece moulded valve and to address an unmet need in the areas of access site vascular injury, valve positioning and placement, and paravalvular leakage. According to management, demand for TAVR devices is growing quickly and the current market is estimated to be worth US$3.5 billion. This is expected to grow to US$5 billion by 2020.

The Cann Group Ltd (ASX: CAN) share price has climbed 3% higher to $2.93 after the medicinal cannabis company announced that it has signed a design and consulting services agreement with Aurora Larssen Projects for the provision of design and construction consulting services for its Phase 3 facility. The greenfield development, which includes GMP manufacturing, is approximately 23,500 metres squared and contains a cannabis flowering production area of approximately 14,000 metres squared. The facility is expected to be operational in the first half of 2019 and puts Cann in a position to compete on the global medicinal cannabis stage, according to management.

The Zenitas Healthcare Ltd (ASX: ZNT) share price has climbed 5% to $1.05 after the home care and health services company announced a binding agreement to acquire Western Australia-based disability care provider, Orion Services. Zenitas will pay $3.6 million plus transaction costs for Orion Services and fund it through its existing cash reserves. This appears to be a good price to pay in my opinion. Orion Services recorded FY 2017 revenues of $4.5 million and EBITDA of $0.7 million. In addition to this, management advised that it is on track to achieve its FY 2018 guidance for EBITDA of between $13 million and $13.5 million. I think this update demonstrates why Zenitas is one of the most promising small cap shares in the healthcare sector.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.