Annual report pursuant to Section 13 and 15(d)

Note 5 - Capital Stock

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Note 5 - Capital Stock
 12 Months Ended
Dec. 30, 2012
Stockholders' Equity Note Disclosure [Text Block]
5.
Capital stock

Common shares

Authorized share capital:

The authorized share capital of the Company at December 30, 2012 and January 1, 2012 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 special voting stock, par value $0.01 per share: From time to time the Company may issue special voting stock in one or more series and will fix the terms of that series at the time it is created.

Issued and outstanding:

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

   
December 30, 2012
   
January 1, 2012
   
January 2, 2011
 
   
Number
of shares
   
$
   
Number
of shares
   
$
   
Number
of shares
   
$
 
Common Stock
                                   
                                     
Exchangeable shares:
                                   
Balance at beginning of the period
    554,748     $ 5,249       583,848     $ 5,524       711,048     $ 6,728  
Shares issued pursuant to:
                                               
Conversion to common stock
    (554,748 )     (5,249 )     (29,100 )     (275 )     (127,200 )     (1,204 )
Balance at end of the period
    —     $ —       554,748     $ 5,249       583,848     $ 5,524  
                                                 
Common shares
                                               
Balance at beginning of the period
    15,651,026     $ 382       15,329,732     $ 379       13,935,284     $ 365  
Shares issued pursuant to:
                                               
Exercise of stock options
    138,419       1       292,194       3       1,267,248       13  
Conversion of exchangeable shares
    554,748       6       29,100       —       127,200       1  
Balance at end of the period
    16,344,193     $ 389       15,651,026     $ 382       15,329,732     $ 379  
                                                 
Special voting stock
                                               
Balance at beginning of the period
    1     $ —       1     $ —       1     $ —  
Balance at end of the period
    1     $ —       1     $ —       1     $ —  
                                                 
Total Common stock
          $ 389             $ 5,631             $ 5,903  

Exchangeable shares:

During the periods ended December 30, 2012, January 1, 2012 and January 2, 2011, exchangeable shares of 554,748, 29,100 and 127,200 with a carrying value of $5,249, $275 and $1,204, respectively, were exchanged for common stock, with a carrying value of $6, nil and $1, respectively, with the difference recorded as additional paid-in capital.

Exchangeable shares of SMTC Manufacturing Corporation of Canada (“SMTC Canada”), an indirect subsidiary of the Company, could be exchanged on a one-for-one basis for one share of the common stock of the Company. Each exchangeable share of SMTC Canada, as nearly as practicable, was intended to be the economic equivalent of a share of common stock of the Company and holders of the exchangeable shares of SMTC Canada were able to exercise essentially the same voting rights with respect to the Company as they would have if they had exchanged their exchangeable shares of SMTC Canada for common stock of the Company. Upon the earlier of July 27, 2015, or the number of outstanding exchangeable shares falling below 500,000, subject to certain adjustment and acceleration provisions, SMTC Canada had the right to exchange all of the outstanding exchangeable shares by delivering common shares of the Company on a one-for-one basis. During the three month period ended April 1, 2012, the number of outstanding exchangeable shares fell below 500,000. On May 25, 2012, SMTC Canada exercised its aforementioned rights, and converted all outstanding exchangeable shares to common shares of SMTC.