Pentablock Owner Discovers Product In An ABANDONED Factory | Shark Tank AUS | Shark Tank Global

[Music] [Applause] First into the tank tonight a stone Mason who wants a shark to help him Build an Empire [Music] Hi sharks my name is Joel norford Founder of Penta block and I'm here Today requesting a 350 000 investment For 10 Equity of my company Penta block It is a unique interlocking construction Block process which features a patented No mortar simple easy and considerably Time-saving construction process Penta Block can be used in all applications in The commercial civil and residential Construction Industries such as Retaining walls feature walls structural Load-bearing walls fences columns Pillars swimming pools basically Anywhere where traditional masonry block And grit construction and Alternate Methods are being used foreign Block provides many advantages over These methods as stonemason would do on Average about one and a half to two Square meters a day one of my guys can Do 50 square meters per day We're stronger we're faster and we're Cheaper they're the fundamental points Of our system so right now I'm going to Get my two boys Brenton and Jake to do a Demonstration for you and I'm going to Get a brochure to give you guys so you

Can have a little look at that while They're doing a build Okay Joel and that was 350 000 big ones Yes for 10 so you're valuing your Company at a modest 3.5 million dollars That's correct just checking just Checking seems like a lot So simply it's just a tongue and groove System which is we call the tongue Groove the top section of the block and Then the groove on the bottom and they Simply stack together like that [Music] So the material is the Block it's not Cladded it's the material it's not the Cladded block we construct the block First this is the first process of our Manufacturing we build a block like this Yes and then we laminate a beautiful Timeless Natural Stone onto the block or Anything or anything exactly so we're Providing a one very quick and simple Process just like that so we're Eliminating a substantial amount of Labor thank you So you'd fill those up with cement of Course so yeah it's freestanding now so Anything over three blocks high which is Somewhere around here you're forced and We like to hear that people call fill it With concrete because it lasts forever But your product is aimed at traditional Builders just to speed it up cheaper Faster exactly what structural Walling

We've actually got 35 more bearing Capacity so we're 25 stronger than Trisodal blocks and Bricks Joel I'm a Serial renovator and Builder So I have seen nearly every single Scenario of stone and Mason and cladding And non-clading the thing I'm confused About is if I wanted a cream look or a Look that you didn't Supply the stone Cladding yes uh how do I get that well We encourage clients to specify a Material and in that case we will then Laminate the material onto this block System for you And then you would buy the product from Us and get yourself could do it or you Could employ some trades people to to Lay the product for you you've been in Business two years can you go through Some of the financials of your Cooperation Um our First Financial year was last Year and we recorded sales of 174 Thousand dollars Returning a profit of around 91.92 Thousand dollars This year we were projecting a sales of Seven hundred and fifty thousand dollars And we're on target at this stage we're Currently sitting at about three hundred And twenty thousand dollars With constant growth so we're still only Working in our local area [Music]

So Joe what do you think your business Model looks like in two years my Intention is working my backyard first So that this next 12 months focus on Victoria the Victoria Market's around 400 million so I'd like to capture you Know one or two percent of that in the Next couple years and then carry around Australia so our third year production Is around 3 million So that again that three times uh growth 300 growth and then again 9 million the Following year now that's with enlarging Marketing uh spends and obviously a Little bit of help along the way but What are your competitors in this space Mate we've got no competitors with a System Surely There's this is it called besser blocks Besser blocks yes that's a product They're sort of are they Hollow as well And correct yes so couldn't someone sort Of do a similar thing with a Better Block Um not really because it's they've got To then get a bricklayer and lay mortar Right okay Did you come up with this idea or did You buy it from somewhere else and You're the distributor I actually found An abandoned building in Vietnam That was there and with trees and stuff Going over

Saying that this and I the next year I Went back for more business and then I Was like there's nothing going here I've Got a block scene what it was it was Like I was going to do something about This Um Peyton did it And basically claimed it Did you just say that you saw this Product in Vietnam yes in an abandoned Factory yes and then you painted it yes I'm uh I'm actually significantly Concerned about your patents Foreign [Music] Is looking for a solid foundation for His building block business Penta block But our sharks are concerned about the Originality of the product did you just Say that you saw this product in Vietnam Yes in an abandoned Factory yes and then You patented it yes It was an abandoned Factory yes And I bought the stone application to it So I've landscaped Stone Mason so your Value ad is that you saw something that Was there but you've also put the tiles And or you can put the granite so you You took something that was there but You added an idea to it correct yeah and I've got it patent granted where Australia and I've got the paperwork in Place for America So Joel I'll let you know how I'm

Feeling I'm uh I'm actually significantly Concerned about your paintings On that basis I'll jump out okay no worries thank you Thank you [Music] Joel I really love your product it's um It's fabulous I think you've done a Really good job thank you So I look forward to being a customer Thank you But I'm not going to be invested today Thank you thank you You don't really need cash I would go For the license to deal but it's not Really my kind of thing I I'm not as Passionate about Stone as you are Although I could admire it no no I think You've done done well thank you but you Know I think there's a few issues around Scale so as an investor I'm out but I Wish you luck thank you thank you And then there were just two [Music] I am concerned about your valuation I've Taken your profit which I've estimated About 200k for this financial year in Right now yes and you're after 3.5 Million which is nearly 18 19 times that But I see your product has a great Position in the marketplace So I look I'm sitting at 350k for 33 percent

Okay I think that's not valuing the the Licensing potential the global potential So what's your counter offer to them Well my limit today was 20 of my company Look I'm going to put it offered to you Um which I think would work for the Valuation where the business is now Because it's all very well saying you're Going to Triple the business every two Years which is is fanciful right it it Really unlikely happens can happen but Particularly in this industry really Highly unlikely I'll give you 350 000 split into 150 000 In equity For how much Seventeen percent Seventeen Percent And two hundred thousand dollar will Call it a loan but it'll be paid off in Two years So Joel what's on offer from Janine here Is a hundred and fifty thousand dollars Cash for 17 equity and then a two Hundred thousand dollar loan Or you can do three hundred and fifty Thousand dollars for thirty three Percent with Glenn Thank you So commercial terms of loan over two Years yeah three has to be two years Look the thing is if we've got great Growth I'm not going to be going right Okay where's my return but there has to

Be some sort of like any business it has To have a capacity to be able to pay its Life yes yes of course but I'm going to Be a partner in the business 17. well that's much more attractive That's under my 20. well I'd like to welcome to Penta Block Thank you thank you is that like I've Been rejected well done mate thank you And I'd like to hear from you I'm in the States thank you thank you good luck Sorry mate that's all right thank you Thank you thank you thanks Joel thank You well done he's going to get to five Or six million very quickly it is a Great product you're going to get your Money back that's a good deal

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