We consider the self-adjoint Smilansky Hamiltonian H in L2 R2) associated with the formal differential expression -x2-1/2(y2+y2)-2y(x) in the sub-critical regime, (0, 1). We demonstrate the existence of resonances for H on a countable subfamily of sheets of the underlying Riemann surface whose distance from the physical sheet is finite. On such sheets, we find resonance free regions and characterize resonances for small > 0. In addition, we refine the previously known results on the bound states of H in the weak coupling regime (0+). In the proofs we use Birman-Schwinger principle for H, elements of spectral theory for Jacobi matrices, and the analytic implicit function theorem.