The market may have only edged slightly higher today, but that hasn't stopped some small cap shares from storming higher in morning trade.
Three small caps that have caught my eye with strong gains on Tuesday are listed below. Here's why they are on the rise:
The Argosy Minerals Limited (ASX: AGY) share price has climbed over 6% to 25 cents. Earlier this month the prospective lithium miner's shares were crushed after results from testing at its Rincon operation in Argentina revealed that its lithium carbonate (LCE) was industrial grade and not battery grade. It appears that some investors are optimistic that the washing process will help increase the grade of its lithium to the much-coveted battery grade.
The MGC Pharmaceuticals Ltd (ASX: MXC) share price has risen almost 5% to 6.6 cents after the cannabis company announced that luxury UK department store operator Harvey Nicholls will stock its cannabis-based cosmetic range within its Knightsbridge and e-commerce stores from June 29. According to the release, the launch is being supported by Harvey Nichols and will be available in Beyond Beauty, a haven for customers looking for niche and unique beauty brands. Management believes this gives it an opportunity to immediately increase its revenue and build strategic brand awareness in a high-end retail operation. While this is certainly a positive development, I wouldn't invest on the back of it as I don't believe the sales generated will be material.
The SKY and Space Global Ltd (ASX: SAS) share price has pushed 6% higher to 9 cents. This morning the satellite company announced that it has signed a binding memorandum of understanding (MOU) with International Air Traffic Automation Systems (IATAS) to explore expansion and development opportunities surrounding the integration of the SAS network across the IATAS platform. This agreement represents the first of its kind to be signed within the commercial aviation service sector and management believes it further validates the technological capabilities of its nanosatellites. I'm not a fan of MOUs and feel investors shouldn't act on them until they become fully fledged agreements. Investors may want to put SKY and Space Global on their watchlist.
