Sweetapolita

Rosie Alyea, of Newcastle, Ontario, founder of Sweetapolita, asked for $720,000 for 9% of her business. The company sells premium decorative sprinkle medleys and baking products, with sprinkles costing about $1.20 to produce and selling for $12, giving roughly 90% margins. Manufacturing is done mostly in Canada, with some luxury items sourced from Europe. Rosie Alyea started the business alone from her kitchen, growing sales from $300,000 to $1.2 million and then to $3.1 million, and said the funding would go toward opening her own manufacturing facility, which she said could add $10 million in sales through white-labelling and co-packing for other companies.

Robert Herjavec went out, saying the valuation was too high for the business. Wes Hall offered $720,000 for 30%, and Manjit Minhas offered $720,000 for 28%; Michele Romanow tried to join Manjit Minhas's offer but the pair could only go as low as 28%. Arlene Dickinson offered $720,000 for 25% plus a 10% royalty until her investment was repaid, then after negotiation revised it to 20% equity with a 7% royalty until repayment, which Rosie Alyea accepted.

Sweetapolita is still operating and sells through its website.