Additional Coverage:
- ‘Shark Tank’ contestants bring canned air as their product, end up with a million dollar deal (marketrealist.com)
Entrepreneurs Rob Neuner and Mike Grice recently walked into the Shark Tank seeking a million-dollar investment for a 5% stake in their company, Boost Oxygen. Their product?
Canned oxygen. The Sharks were initially surprised by the ask, but Neuner and Grice presented a compelling case for their product, highlighting its portability as a key advantage over traditional oxygen tanks for athletes and those traveling to high altitudes.
Boost Oxygen’s impressive sales figures, projected to reach $6.4 million, further piqued the Sharks’ interest. However, the unfamiliarity of the canned oxygen market led most of the Sharks to decline. Kevin O’Leary, however, saw potential.
Recognizing the company’s value, but wary of the high investment, O’Leary offered a million-dollar loan at 9% interest over three years, along with a 7.5% equity stake. While intrigued, Neuner and Grice expressed concern about taking on such significant debt. Negotiations ensued, with the entrepreneurs countering at 6% interest and 5% equity.
Ultimately, a compromise was reached. O’Leary agreed to a 7.5% interest rate on the loan and a 6.25% equity share, securing a deal with Boost Oxygen.