Innovente Announces a "Best Efforts" Private Placement Equity Financing of Up to $7.5 Million

QUEBEC CITY, Oct. 18, 2011 /CNW Telbec/ - Innovente Inc. (TSX VENTURE:IGE) ("Innovente" or the "Corporation") announces that it has entered into a letter of engagement with National Bank Financial Inc. (the "Agent") with respect to a "best efforts", agency basis, private placement consisting of Common Shares of Innovente for aggregate gross proceeds of up to $7.5 million (the "Offering"). As per the engagement letter, the Agent will act as agent in the context of the Offering. The issue price of the Common Shares has not yet been determined and will be mutually agreed upon by the Corporation and the Agent. The Common Shares will be offered in each of the provinces in Canada. The Common Shares issued pursuant to the Offering will be subject to the statutory hold periods and the Offering remains subject to applicable regulatory approvals.

Innovente has also filed a request for a preliminary ruling from Revenue Quebec confirming that the Common Shares to be issued pursuant to the Offering will be qualified shares under the Quebec Stock Savings Plan II.

Additionally, Innovente announces that it is in advanced discussions with certain financial institutions regarding a debt financing of up to $8.5 million.

The net proceeds of the Offering and of the debt financing would, if completed, be used by the Corporation for (i) completing the construction of its Saint-Patrice-de-Beaurivage cogeneration plant, (ii) the development of new biomass power projects, and (iii) general corporate purposes.

Annual and Special Meeting of Shareholders

The Corporation wishes to remind its shareholders that it will hold its Annual and Special Meeting of Shareholders on Friday, October 21, 2011 at 10:00 AM at 2828, Laurier Boulevard, suite 1500, Complexe Jules-Dallaire/Tour Norton Rose in Québec City (Quebec).

About Innovente

Innovente (TSX VENTURE:IGE) produces electricity from organic waste and residues. We call this intelligent electricity because it does not require fossil fuels, produce nuclear fission products or disrupt of the food chain.

At the heart of Innovente's technologies is a patented drying process, developed over the last 10 years by the Research and Development Institute for the Agri-Environment (IRDA). This biological drying process (biodrying) allows Innovente to extract water from waste and transform it into biofuel. In addition to intelligent electricity, Innovente produces useful heat and fertilizers, and helps reduce greenhouse gas emissions.

Innovente's intelligent electricity is produced locally from waste and residues located in the region where it operates. Innovente is completing its first plant in St. Patrice, Quebec. The plant will produce 4.6 MW of electricity that will be sold to Hydro-Québec over a 25-year period. With this first plant, Innovente launches its growth strategy and plans to replicate this project in Canada, the U.S. and worldwide.

Forward-looking statements contained in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of Innovente Inc. to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as these terms are defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Innoventé Inc.

Genevieve Blais
Director of Communications
[phone] ext. 200
[email protected]