Rack Stacker Brand Products

Steve & Selina Elmy
Tweed, ON

The pitch

Steve & Selina Elmy from Tweed, ON, pitched Rack Stacker Brand Products in Season 10, Episode 15, asking the Dragons for $500K for 15% of the company.

Asked for$500K for 15%
Valuation$3.33Mimplied by the ask
OutcomeDealwith Jim Treliving
Final deal$500K for 50%valued at $1Mplus a royalty: 50% equity dropping to 15% once Jim Treliving's investment is repaid

Offers in the Den

Dragon	Offer	Result
Joe Mimran	Valuation too high without a clear breakeven point	Out
Michele Romanow	Concerned about valuation	Out
Michael Wekerle	Encouraged them to find profitability first	Out
Manjit Minhas	Asking price too high relative to sales	Out
Jim Treliving	$500,000 for 50% equity, dropping to 15% once his investment is repaid	Accepted

Steve Elmy and Selina Elmy of Tweed, Ontario run Rack Stacker, which makes a mineral fountain product used to attract deer and other wildlife, sold in pails with pre-drilled holes and 10 pounds of mineral, and asked for $500,000 for 15 per cent equity. The product is sold through about 900 retailers across Canada including Canadian Tire, Walmart and Wholesale Sports, with best-year sales of $426,000 that did not turn a profit; Steve Elmy has personally invested about $240,000, funded through equity in a farm, and said the business needed capital to move into 20 and 50 pound bulk bags to meet demand.

Joe Mimran, Michele Romanow, Michael Wekerle and Manjit Minhas all went out, citing a valuation they felt was too high given the sales level and the lack of a known breakeven point. Jim Treliving offered $500,000 for 50 per cent equity, dropping to 15 per cent once his investment was repaid, which Steve and Selina Elmy accepted.

Pitch details from CBC’s Dragons’ Den pitch page.