Replies to post #1253 on P10 Industries Inc. (PX)

[umiak]

Based on a previous filings they have an investor and are looking for more (expected by eoy)

[steeledge]

2 very good questions...my take on them

So what they'll have to do is acquire a profitable company which will then use the carryovers as part of the combined entity?

In short, YES.

How are they going to acquire a profitable company to use the NOLs with the under $2 million in cash and without a substantial dilution? Or are we expecting the latter?

This is my greatest concern. Any decent investor is going to know that having the stock trade on OTC brings a lower valuation due to liquidity issues. And surely, mgmt must not want to issue a bunch of stock at these depressed price levels. So it's tough. My guess is that there'd have to be some sort of convertible debt, and I just pray that it's not toxic.


Has anybody asked management whether they have plans to uplist once their transaction(s) are complete? Or are they content with saving money languishing on the OTC?

I say "languishing", but being on the OTC has some advantages beyond cost savings. It's more difficult to short OTC, so upside moves could be more fierce. And with the megabucks made in the marijuana OTC names, that mojo could carry over to some degree with PIOI.