SMTC Corporation Annual report pursuant to Section 13 and 15(d)

Note 7 - Capital Stock

12 Months Ended

Dec. 30, 2018

7.	Capital stock

Common shares

Authorized share capital:

The authorized share capital of the Company at

December 30, 2018

and

December 31, 2017

consisted of:

(i)

26,000,000

shares of common stock, par value

0.01

per share: Holders are entitled to

one

vote per share and the right to share in dividends pro rata subject to any preferential dividend rights of any then outstanding preferred stock.

(ii)

5,000,000

shares of preferred stock, par value

0.01

per share: From time to time the Company

may

issue preferred stock in

one

or more series and will fix the terms of that series at the time it is created.

500,000

shares of series A participating preferred stock, par value

0.01

per share authorized. As at

December

30,

2018,

there was

outstanding preferred stock.

Issued and outstanding:

The outstanding number of common shares included in shareholders’ equity consisted of the following as at the following dates:

	December 30, 2018				December 31, 2017				January 1, 2017
	Number of shares		$		Number of shares		$		Number of shares		$

Common Stock

Balance at beginning of the period		16,992,627	$	396		16,510,180	$	391		16,485,055	$	391
Shares issued pursuant to:
Issuance of common shares from rights offering		5,777,768		58		—		—		—		—
Conversion of restricted stock units or exercise of stock options		418,986		4		482,447		5		25,125		—

Balance at end of the year		23,189,381	$	458		16,992,627	$	396		16,510,180	$	391

Total Common Stock			$	458			$	396			$	391