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Revenue £286.6m
Position in Universe th / 7414

Stockholders Approve SMTC Corporation’s Definitive Merger Agreement and Investment by H.I.G. Capital

Wed 31st March, 2021 9:05pm
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TORONTO, March 31, 2021 (GLOBE NEWSWIRE) -- SMTC Corporation (Nasdaq:SMTX
(“SMTC” or the “Company”), a global electronics manufacturing services
provider and past winner of Frost & Sullivan’s Best Practices Award for
Customer Value Leadership in the Electronics Manufacturing Services Industry,
today announced that its stockholders at its special meeting held earlier
today voted to adopt the previously announced definitive merger agreement,
pursuant to which an affiliate of H.I.G. Capital, LLC (“H.I.G.”) would
complete its investment in SMTC. The proposed merger is expected to close the
week of April 5, 2021, subject to customary closing conditions set forth in
the merger agreement, which was filed as an exhibit to, and discussed in
detail in, the definitive proxy statement on Schedule 14A filed with the
Securities and Exchange Commission (“SEC”) by the Company on February 18,
2021, as supplemented by the supplemental disclosures filed with the SEC by
the Company on February 25, 2021.

About SMTC

SMTC Corporation was founded in 1985 and acquired MC Assembly Holdings, Inc.
in November 2018. SMTC has more than 50 manufacturing and assembly lines in
the United States and Mexico, which creates a powerful low-to-medium volume,
high-mix, end-to-end global electronics manufacturing services (EMS) provider.
With local support and expanded manufacturing capabilities globally, including
fully integrated contract manufacturing services with a focus on global
original equipment manufacturers and emerging technology companies, including
those in the Avionics, Aerospace and Defense, Industrial IoT, Power and Clean
Technology, Medical and Safety, Retail and Payment Systems, Semiconductors,
Telecom, Networking and Communications, and Test and Measurement industries.
As a mid-size provider of end-to-end EMS, SMTC provides printed circuit board
assembly production, systems integration and comprehensive testing services,
enclosure fabrication, as well as product design, and sustaining engineering
and supply chain management services. SMTC services extend over the entire
electronic product life cycle from the development and introduction of new
products through to the growth, maturity and end-of-life phases. For further
information on SMTC Corporation, please visit our website at

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements regarding
the proposed merger, the ability to consummate the proposed merger and the
timing of the closing of the merger. Forward-looking statements are indicated
by words or phrases such as “guidance,” “believes,” “expects,”
“intends,” “forecasts,” “can,” “could,” “may,”
“anticipates,” “estimates,” “plans,” “projects,” “seeks,”
“should,” “targets,” “will,” “would,” “outlook,”
“continuing,” “ongoing,” and similar words or phrases and the negative
of such words and phrases, and specifically include the timing of the closing
the merger, if at all. Forward-looking statements are based on the Company’s
current plans and expectations and involve risks and uncertainties which are,
in many instances, beyond the Company’s control, and which could cause
actual results to differ materially from those included in or contemplated or
implied by the forward-looking statements. Actual results could differ
materially from those contained in any forward-looking statement as a result
of various factors, including, without limitation: (1) the conditions to the
closing of the proposed merger may not be satisfied and required regulatory
approvals may not be obtained; (2) the proposed merger may involve unexpected
costs, liabilities or delays, including the payment of a termination fee to
H.I.G. by the Company; (3) the business of the Company may suffer as a result
of uncertainty surrounding the proposed merger; (4) the effect of the
announcement or pendency of the proposed merger on the Company’s business
relationships, including with customers and suppliers; (5) the outcome of any
legal proceedings related to the proposed merger; (6) the failure by H.I.G’s
affiliate to obtain the necessary debt and equity financing arrangements set
forth in the commitment letters received in connection with the proposed
merger; and (7) other risks to consummation of the proposed merger, including
the risk that the proposed merger will not be completed within the expected
time period or at all, which may adversely affect the Company’s business and
the price of the Company’s common stock.

The foregoing review of important factors that could cause actual results to
differ from expectations should not be construed as exhaustive and should be
read in conjunction with the information contained in the Company’s SEC
filings, including, but not limited to, the risk factors included in the
Company’s filings with the SEC, including the Company’s Annual Report on
Form 10-K for the year ended January 3, 2021, filed with the SEC on March 17,
2021. No assurance can be given that these are all of the factors that could
cause actual results to vary materially from the forward-looking statements.

Except as required by applicable law, the Company does not intend, and assumes
no obligation, to update any forward-looking statements. The Company’s
stockholders are advised, however, to consult any future disclosures the
Company makes on related subjects as may be detailed in the Company’s other
filings made from time to time with the SEC.

SMTC Corporation Investor Relations Contact

Peter Seltzberg
Managing Director
Darrow Associates, Inc.


GlobeNewswire, Inc. 2021
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