WoodsCan Industries Inc.

Michael Marek & David Woods
Victoria, BC

The pitch

Michael Marek & David Woods from Victoria, BC, pitched WoodsCan Industries Inc. in Season 11, Episode 8, asking the Dragons for $150K for 10% of the company.

Asked for$150K for 10%
Valuation$1.5Mimplied by the ask
OutcomeDealwith Michael Wekerle
Final deal$150K for 10%valued at $1.5Mplus a royalty: 10% royalty on unit sales until repaid, then converting; equity plus royalty structure

Offers in the Den

Dragon	Offer	Result
Joe Mimran	Concerned about market size and valuation of $1.5 million on $125,000 in sales, out	Out
Manjit Minhas	Worried about declining sales trend since first year, out	Out
Michele Romanow	Likes the product but can't get excited about market size, out	Out
Michael Wekerle	$150,000 for 10% equity plus 10% royalty on unit sales (up to 20% royalty if more capital needed), later settled at 10% equity plus 10% royalty	Accepted
Jim Treliving	No offer made, not clearly stated as out with reason	Out

Michael Marek and David Woods, of WoodsCan Industries in Victoria, BC, asked for $150,000 for 10% equity. Their product is the Hornet Rechargeable Electric AirHorn, a rechargeable alternative to disposable air horns, selling as an industrial kit for $500 retail, with a manufacturing cost near $150 versus $25 for a lower-cost version they hope to introduce. Over four years the company generated close to $500,000 in revenue, with its first year being its best at $125,000, and it has ten distributors across four continents.

Joe Mimran went out over concerns about the valuation of $1.5 million on limited sales. Manjit Minhas went out worried about declining year-over-year sales. Michele Romanow praised the product but felt the market size was too small to invest. Michael Wekerle offered $150,000 for 10% equity plus a royalty, initially proposing 10% before the founders countered at 7%; when Michael Wekerle threatened to walk away if they countered, the founders accepted the original offer of 10% equity plus 10% royalty on unit sales.

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