Financially we need help so what we need To do now is get the Sharks on board and Take the product global Hi sharks My name is Scott bucock and I'm from Hegs pegs I'm here offering 10 of the company for Three hundred and eighty thousand Dollars The idea of the Hague started in 2012 When I was outside and I was hanging up The washing I picked up a black silk dress of my Wife's and I was looking at the dress Looking at the line thinking to myself How am I going to hang this up without Any line marks Peg marks or sun marks And I looked up at the line and there Was a peg there and I thought if that Pig had a hook on it I could just hook It up by the straps And that would solve the problem So that's where the Hague it's a pig With hooks was born Thank you so using local South Australian industry I had some Prototypes made trademarked the word hex Submitted a patent application And went to our very first meeting which Was a lit with a local supermarket chain Called Drake supermarkets in South Australia and I walked out of there with A handshake and 55 supermarkets We've just secured Woolworths as well as
Aldi in England Ireland and Scotland We've won two Awards this year one of Which was the Gold Award in the International good Design Awards So I'm here today to hopefully secure a Deal with you the Sharks to take the Hague global Let's have a look at bag of eggs please Mate yeah sure well done by the way You've got obviously off the ground and Launched what are your sales today we've Sold 43 235 bags Give or take but what price and what are You making for give us the economics Mate we're going to be producing them For 1.71 cents for a bag of 18 for a bag Of 18 correct retail we're recommending Retail just over five dollars a bag Right Good business So the idea was when we first started it We wanted to do it in Australia at the Time it couldn't be done so we ended up Making them in China then about eight Months ago we found a company that can Do them as competitive as China and Cheaper We are 100 Australian made now in Shipping as well can you can use a Little bit more about who are you and What did you do before you did this I'm A country guy I'm born in Alice Springs Uh nice traveled the world for about 14
Years and now currently I'm an agent for Keynote speakers as a full-time role so This is still part-time right it's Actually full-time I just work two jobs I know what that's like Talk to me though about marketing how Are you going to let everyone know about This though because that's a big task That is a big part of why I'm here today Is the pr side We know there's other markets we're Talking to a range of different Companies from the Bunnings to the uh to Walmart you're actually considering Exporting closed pigs to America made in Australia How gold is that It's wonderful I did I use in South Australia I had a business deals in the Army down there I got out of the Army in South Australia the Clarence Gardens Just down the road from edwardstown so This is a great essay story Uh you've really cracked it this is this Is nice Contribution for this business two Visions I guess the first vision is to Have a range of heads second vision of That is that one day why would you need Pegs when you can just use eggs yeah Well I hate it when you can why pack it When you can hang it is what I say So just to reiterate 10 for 380 000 so You're valuing your business at 3.8
Million that is correct right now the Sales don't warrant the valuation so Tell me about next year a million Dollars is our forecast for this coming Year a turnover what sort of profit do You think you'll have after costs on That million dollars it sits at around The 17 Mark to begin with because of the You're still going to make 170 thousand Dollars that's correct The 390 000 you want to you want to bend Angle out of this what are you going to Spend that on mate the main things are PR As well wages in the big part of why We're here asking for the money is International once we start doing this We need to secure the trademarks in Those countries Trading overseas yeah we do we have a Trademark but the trade market the Patent's more important to me currently When we actually send these over that We'll put the trademark in as well Um Just when you were sort of saying Trademarks you haven't done those and The patents my head was just going Jing Jing Jing with with the cost and the the Valuation is also 22 times next year Projected profit yeah For me that's an extraordinary Evaluation For those Reasons I'm out okay
Can I just uh go back to that and just And thank you for bringing those up we Got an evaluation done and they verbally Told us what the valuation was what were They smoking when they made the Evaluation I'm sorry but you don't have The sales to support that So we can all ignore that valuation Can't we at this point in time because You're not going to get 3.8 mil if you Get a deal here today right You're valuing it like a far more Established business with several Million in Revenue with far more Structure than you've got okay I'm out thank you very much I'm gonna tell you anything more about The egg I'm sorry I know this is your life's Work but I I just can't I can't get Excited about this particular space for That reason I'm out thank you very much I appreciate your comments So Naomi and Steve left I haven't heard From Naomi very much today I reckon she Should go first to you now I do So this is what I see A really great guy who's pretty straight Up and I know I could work with you Thank you thanks man I live in the Online world but I do understand Brands And I understand creating Brands I Understand Innovation and I believe in Great Australian innovation
So the offer that I'm going to put to You is nothing like what you've asked For Scott bucock has come up with a new spin On the clothes Peg and he wants 380 000 In return for 10 of his business three Sharks are out will Naomi buy into the Hague Peg dream the offer that I'm going To put to you Is nothing like what you've asked for Okay I offer you A hundred thousand dollars For 15 of your business and a two Hundred and eighty thousand dollar loan Because you're going to need the cash Thank you very much for the offer yes I'll leave that with you thank you Thanks name that's a great offer name is Major I mean I I have you at yeah being Generous at sort of between 140 and turn Okay and net profit right and if you Look at that business that that's a Business at a five to six times Valuation but I love what you've done And I'm I'm trying to make a deal on my Bit of paper that makes a bit of sense To me One of the things I like ex-south Australian boy and so you know I'm Coming from that really you know trying To support a Fed income Australian Entrepreneurial person and business All right
So I can look at the I can look at the 380k Let's do that for 35 percent But I'm after I'm after a royalty And it'll be five percent Up until the point that 390 000 is all Repaid thanks very much Steve for the Offers and I bring with it 30 years of Marketing PR experience you know I bring I bring about 15 years experience in Internet and apps that should be really Helpful yeah that's right Scott The key message for anybody in Businesses debt is cheaper than Equity But there's one significant difference Between their offers so as long as You've considered that you come here for A mentoring session as well I'm now Going to shut up didn't you jump out of This deal I'm just trying to make sure You think clearly that's all now make Your decision The decision Is a hard one Yes please so I said yes a hundred Thousand dollars for 15 yes and at two Hundred and eighty thousand dollar loan So you get the cash that you need right Now uh-huh I've offered 380 000 yes and I still Think it's a good deal right for 35 Equity which will be there yes until Someone else injects more equally that
Percentage won't change I will get a Five percent royalty up until a point That 380 000 is all repaid What is the difference between their two Offers the biggest difference between Their two offers he gets his equity for Free I'm paying for it okay you're paying for It the difference yeah I'm paying for 15 yeah at a hundred Thousand which is a real kind of Realistic valuation given the your Forward orders He's saying 35. and your numbers it Should take me about two two and three Quarter years if your numbers are Correct to get that pay back sure Thanks very much for the offer Steve Um thanks very much for the offer Miami Uh I guess I'm going to I am actually going to take one of you And accept the offer Steve just at 35 It's just Too far up there I would rather partner With Naomi build the business build the Brand use your PR expertise on your Marketing and at the end of the day you Know if you're offering that money and Then pay that back that's a wonderful Thing for us so I would love to take Your offer Hey well done thank you very much you're The most expensive challenge
Thank you very much thank you for that I Really look forward oh look lots of Ideas Well done much thank you very much Appreciate it thank you thank you thanks Anna well done thank you Follow the ladies to get it she's in red And she looks good and she wants to back The head so I'm very excited I never Thought I'd be in the head business And look Naomi is self-supporting I'm so excited
