P10 Industries Inc. (PX)

[chemist72]

Why is RCP being acquired by PIOE?

RCP is a multi-billion dollar SEC-registered investment advisory firm. Why would they partner with puny little P10 Industries?

As I see it, they are only 2 main carrots that PIOE was able to dangle in front of RCP.

1) A chance to utilize over $275M in NOL's. This will increase RCP's bottom line instantly. Their tax savings will depend on how much taxable income they generate. Will they use those NOL's in a couple of years? Probably not. But depending on their growth rate, they could possibly use those NOL's for anywhere from 8-12 years (my own guesstimate).

2) Partnering with PIOE affords RCP the opportunity to be listed on a major exchange in a relatively short period of time and at minimal cost to them.

As I see it, this deal will cost RCP little and enable them to gain much. Of course PIOE will benefit as well, presumably by a much higher share price down the road. A classic win-win deal for both companies imo.