Entrepreneur Discovers Product in ABANDONED FACTORY & Patents for Distribution! | Shark Tank AU

The first to enter the

tank

tonight is a stonemason who wants a

shark

to help him build an empire. Hello

shark

s, my name is Joan Orford, founder of Penta Block and today I am here requesting an investment of $350,000 for 10% of the capital stock of my company Penta Block. Pender Block is a unique interlocking building block process that features a patented mortar-free construction process that is simple, easy and significantly time-saving. Penta block can be used in all applications in the commercial residential and civil construction industries, such as retaining walls, feature walls, structural load-bearing walls, fences, columns, pillars.

Swimming pools basically anywhere where traditional masonry block and brick construction and alternative methods are used. The penis block offers many advantages over these methods. A stonemason would average about one and a half to two square meters per day mm-hmm, one of my guys can. we do 50 square meters a day we are stronger, we are faster and we are cheaper those are the fundamental points of our system, so right now I am going to ask my two sons, Brenton and Jake, to do a demonstration for you and for my. I'm going to get a brochure to give to you guys so you can take a look at it while you're building, okay Jo, and it was three hundred and fifty thousand grand, yes, at ten percent, so you're valuing your company at a modest 3.5 million of dollars, that's right, just check, just check, it looks like everything is lined up, so it's just just a tongue and groove system, which we call the top section of the block a tongue and groove and then a groove on the bottom and they just stack together like this. so the material is the block, it does not make noise, it is the materials, not the coated block, we build the block first, this is the first process of our manufacturing, we build a block like this, yes, and then we laminate a beautiful timeless natural stone on the block or something like that. or anything exactly, so we are providing a very quick and simple process like that, so we are eliminating a substantial amount of labor, so you would fill them with cement of course, so yes, now it is independent, so anything over three blocks. tall, which is somewhere around here, you're bound and we'd like to hear people say fill it with concrete because it lasts forever, but their

product

is aimed at traditional builders just to speed it up, cheaper, faster, exactly what structural wall and we.

In fact, we have 25 percent more load capacity, making us 25 percent stronger than trackable blocks and bricks. Joel I am a serial renovator and builder, so I have seen Lee every stone, mason, siding and non-siding scenario. I think I'm What I'm confused about is whether I wanted a cream look or a look that you didn't provide with the stone veneer. Yes, how do I get it? We encourage customers to specify a material and in that case we will then laminate the material into this block system. you and then you would buy the

product

from us and get it yourself.

You could do it or you could hire some merchants to place the product for you. He has been in business for two years. Can you review some of Europe's finances? Your cooperation. Our first financial year was last year and we recorded sales of one hundred and seventy-four thousand dollars, generating a profit of about ninety-one ninety-two thousand dollars. This year we were projecting sales of seven hundred and fifty thousand dollars and we are on target. At this stage we're currently sitting around three hundred and twenty thousand dollars with steady growth, so we're still only working in our local area, so Joel, what do you think your business model will look like in two years?

My intention is to work in my backyard first. So for at least the next 12 months we will focus on the Victorian markets, around 400 million, so I would like to capture one or two per cent of that in the next two years and then move that to Australia, so our prediction for the third year is around three million, so Again, about three times they grow three percent growth and then again nine million the following year, that's with bigger marketing spins and obviously a little bit of help in the way, but what are you competitors in a new space?

If we didn't have competitors. with a surely there is, it's called better blocks, better blocks, yes, that's a product, yes, a kind of gap is fine and correct, yes, so couldn't someone do something similar with a better block, not really Because it's there, do they have to do it? then get a brick layer inlay mortar ok? Did you come up with your idea or did you apply it from somewhere else and were you the distributor? In fact, I found an

abandoned

building in Vietnam that was there and with trees and things going on seeing the this and I the next year I came back to do more business and then I thought that nothing was happening here.

I have a crash, I saw what it was, like I was going to do something about it, I patented it and basically escalated it. Say you saw this product in Vietnam, yes, in an

abandoned

factory

, yes, and then you patent another one. Yes. I am really worried about your pains. John Orford is looking for a solid foundation for his building block business. Pentablock, but our sharks. They are worried about the originality of the product. Did you just say that you saw this product in Vietnam? Yes, in an abandoned

factory

. Yes, and then you patented it. Yes, it was an abandoned factory.

Yes. And I bought the stone application from him, so I passed him on as a stonemason. your added value is that you saw something that was there, but you also put the tiles or you can put them around, so you took something that was there but you added a correct idea to it, yes, yes, and I have got a patent granted in Australia and I have paperwork for America, it's better, so Joel, oh Allah, I'll let you know that I feel like I'm actually very concerned about your

patents

, so on that basis. I'll jump fine, no thanks.

Thanks Joel. I really love your product. It's fabulous. I think you have done a very good job. Thank you, so I hope to be a customer. Thanks, but I'm not investing today. thanks, you don't really need cash. I'd go for license to trade, but that's not really my kind of thing. I'm not that passionate about stones, although I could admire them. No no. I think you did well, thank you. you, but you know, I think there are some issues around scale, so as an investor I'm out, but I wish you luck, thank you, thank you and then there was too much.

I'm worried about the evaluations. I have taken your profits, which I have estimated to be approximately 200,000 for this financial year right now, yes, and you are looking for 3.5 million, which is almost 18 and ten times more, but I see that your product has an excellent position in the market , let's say okay, look, I'm sitting at 350,000. for the 33%, okay, I think that's not valuing the licensing potential, the global potential, so what is your counteroffer to them? Well, my limit today was 20% of my company. Look, I'll postpone it for you, which I think would work. the valuation of where the business is now because it's all very well saying that business will triple every two years, which is fantastic, true, it's very unlikely to happen, but in particular this industry it's very unlikely.

I'll give you three hundred. two thousand dollars divided into one hundred fifty thousand dollars in equity so what seventeen percent one hundred seventeen percent and $200,000 we'll call it a loan but it will be paid off in two years so Joe what Jeanine is offering here is one hundred fifty thousand dollars fifty thousand dollars in cash for seventeen percent equity and then a two hundred thousand dollar loan or you can do three hundred and fifty thousand dollars for thirty three percent with Glenn, so the commercial terms of the line are over two years, yes, three It has to be two years, the thing is.

If we have great growth, I'm not going to do well, where is my return? But there has to be some kind of business and it has to have the ability to be free of hate for a long time. Yes, yes, of course, but I'm going to be a partner in the business 17 well that's a lot more tractor that's below my 22% well I would love to welcome you to the Pinto block thank you it's like they rejected me well done friend thank you I would like to know about "I'm in the United States, thank you, I saw it, thank you, thank you, thank you, thank you, Joe, thank you, it will reach five or six million very quickly, it is a great product, we will give you your money back, it is a good business".

My spine tingles when I hear your name.