Oops, Chaoda (0682) does it again

Pays $450M in stock valued at $7.65 for 70% of a company (Keen Spirit) that has:

- NO REVENUES just losses

- $20M of liabilities

Not clear from the filing but the Keen Spirit group has around $25M of annual loss up to Nov 2009.

It's a considerable leap of faith for anyone to believe this is an intelligent investment made by Chaoda.

What exactly are they buying??...

"The investment in the Target Group will also allow the Company to advance new products by making use of the Patents in organism technologies to develop edible vaccines derived from plants, which are expected to have positive prospects in the agricultural industry."

So not only are they paying $450M for a loss making company with no independently valued asset value, they are moving away from their core competency and into biotech.