DEINOVE : Set up of Standby Equity Facility (PACEO®) With Société Générale

Regulatory News:

DEINOVE (Paris:ALDEI) (Alternext Paris: ALDEI), a technological company that designs, develops and markets a new generation of industrial processes based on Deinococci bacteria, is setting up a Standby Equity Facility (PACEO^®) with Société Générale in accordance with the authorisation granted by the general meeting held on 3^rd May 2012.

Emmanuel Petiot, CEO of DEINOVE, stated: "This standby equity facility allows reinforcing our flexibility and diversifying our sources of financing, while preserving our financial structure. The funds raised will contribute to finance our various ambitious projects in the green chemistry field (second-generation biofuels and chemical intermediates).”

Société Générale undertook to subscribe successive capital increases over the next 36-months, up to 450,000 shares in aggregate (i.e. 9.0% of the current share capital).

For each tranche, the issuance price will depend on the volume weighted average price of the shares for the three trading days immediately preceding the relevant issue date discounted by no more than 6%. This discount will enable Société Générale, who has no intention of remaining a shareholder in the Company, to underwrite the subscription regardless of market volatility.

DEINOVE has no drawdown obligation, and only intends to use this facility if market conditions mean that it is in the best interests of both the Company and its shareholders.

The potential impact of the Standby Equity Facility (PACEO^®) on a 1% stake in DEINOVE prior of its implementation is summarized hereunder:

¹ Leading to the issuance of 450,000 new shares.
² Based on 5,002,935 shares representing DEINOVE share capital.
³ After having issued 876 420 new shares, assuming that all the dilutive instruments issued or attributed as of the date of this press release have been fully exercised.

About DEINOVE

DEINOVE (Alternext Paris: ALDEI) is ushering in a new green chemistry order by designing and developing new standards of production based on bacteria of untapped potential: the Deinococci. Taking advantage of their unique genetic properties and unusual robustness, DEINOVE optimizes natural fermentation and metabolic capabilities of these bacterial "micro-factories" to produce high value added products from non-food biomass. The Company’s primary markets are 2nd generation biofuels (DEINOL) and chemical intermediates (DEINOCHEM). Listed on Alternext since April 2010, DEINOVE was founded by Philippe Pouletty MD, General Partner of TRUFFLE CAPITAL, and Professor Miroslav Radman, of the Faculty of Medicine of the University René Descartes. The company employs over 40 people in its new offices and laboratories located at the Biopôle Euromédecine, in Montpellier.

More information at www.deinove.com

About PACEO®

The PACEO® is an equity financing solution that was designed by Société Générale. The PACEO® helps issuers to diversify their funding sources through an additional financing option, while preserving the financial balances. The PACEO® may be drawn at the issuer’s sole discretion via the issue of new shares at a low discount to the then market price; this solution provides the same benefits as a capital increase while providing the same guarantee as a confirmed credit line. With this transaction, Société Générale, the leading institution for equity lines in France, has set up its 33rd PACEO®.