Shark Tank US | Kevin Hart Swaps Partners On The Transformation Factory Deal

First in the

tank

is a product in the health and wellness space. What is happening with the

shark

s? My name is Alexio Gibson. I was born and raised in the Bahamas and I'm here looking for five hundred thousand dollars for five percent of the equity in my company. I was a pretty healthy guy, but I wasn't always like that. In fact, when I was 21 he weighed over 500 pounds and I was told he wouldn't live to be 30. So I knew I had to do something right away to get there. In my life I started exercising more, eating healthier, and even became vegan.

Mark Cuban, yes, during my

transformation

I found a nutrition ingredient that had 90 percent of the minerals our human body needs and I incorporated it into my life every day. It's called CMOS CMOS is a powerful marine technology that exists in our oceans and has 90 percent of the essential minerals that our human body has. I wanted everyone to have this product so they too could become the best versions of themselves, which is why I created Transformation Factory, a line of delicious CMOS gels that you can take and get ninety percent of your nutrients with two scoops every day, so tell me

shark

s who is ready to transform the world with me and see nothing but green in the future. now sharks in front of you, you have our delicious line of CMOS cases for you to try for yourself, you will try our dragon fruit, mango, strawberry, banana, pineapple and last but not least elderberries, strawberry It tastes very good, it's almost like jam. or gelatin more like a shake, it tastes more like a shake, so CMOS has 90 of the essential minerals that our human bodies need to function, so you have zinc Baron, you have iodine which treats the thyroid and it also treats the intestine, the intestine is where our immune system system lives the only sweetener in this is agave organic agave syrup alexios you said you lost 300 pounds yes I did, how did you do that and what was it like?

I remember reading an article where you know some weight loss contestants on different reality shows worked out four to six hours a day and I said to myself as a personal challenge. I'm like man, these people are as big as me. Some of them are twice my age. What is my excuse? I can do six hours. Let's do this. Wow, I became obsessed. By becoming the best version of myself, I would literally be on the elliptical machine and I would be imagining that a healthier version of myself would look like a more confident good to you and I started chasing that guy in my mind very, very hard. congratulations, thank you all, thank you, what are your sales at the moment?

We are at 3.5 million sales today. Wow, we started 11 months ago. How are they distributing it to get that kind of trajectory? So the way this really started, my 80 year old son. My grandmother was visiting from the Bahamas, she has a lot of basic mobility and takes medication, so she knew she wanted to protect her. She would put this in her coffee every morning. She was sharing stories on my Instagram shop. I was worried that they would appear like CMOS lattes every eight in the morning. o'clock in the morning and I'll give it to grandma and they said: I know what CMOS is.

I keep hearing about it. Can I pick something up? I am a registered nurse. I'm on the covid ward and I'm absolutely like you ladies you're soldiers come and take it we don't charge and I was giving it away without even thinking it could have been a business and it wasn't until I was getting about 60 orders a week. Last week I said why don't I open an online store to simplify the process. From there it skyrocketed, we started running ads, we started getting more SEO traction, we had 800 percent growth from February to March when we started running ads and people knew it.

We exist, did you make any money from the 3.5 million in sales? Yes, we have about a 35 percent profit margin, so you made a million dollars in profit. Yes, 1.4 million, we invested a huge amount in the business, but we have extremely healthy cash. flows and everything is still direct to Consumer it's direct to Consumer 100 online so I'm curious what would you use money for it so the way I would use the money is I actually want to have a Transformation Factory where let's have the ingenuity and the machines to stabilize our products on the shelves, you want to do that to get to the shelves of the retail stores, yes, we want to be in the retail stores.

It shows how much each bottle sells for, so an eight eight ounce raw CMOS sells for 24.99 24.99 yeah, 24.99 but you only use two scoops and how much does it cost you to make? The cost of the smallest jar is four dollars and fifteen cents. Let's make margins. Yes, those are excellent margins. So how do you handle this when you make it? How do you make sure it is? clean, safe, pure great question, because this comes from outside the United States, it has to be approved by the FDA and Customs to even enter for consumption. Why would anyone pay 24.99 for a small bottle of what looks like baby food?

How did they find out? This is a culturally driven product in our community African American community. This is something that's getting hype right now and we're seeing growth, so I bought it and it was in a simple bottle and it was like an exclusive purchase, it almost felt like a drug

deal

. I'll be honest, I know someone who can get you some and I was like, okay, I'll try it, so everything you're saying I know is true. What intrigues me most are your numbers, do you have other investors or

partners

at this time. I own a soul, good for you honey, I'm debt free, I'm a first generation entrepreneur and all, this is where I need help, where you know I really.

I want a solid financial background in a system, that's an area I would love to be extremely, why are you only giving us five percent and why did you ask for five hundred thousand dollars because you don't need the cash and you know if you need it? That five percent amount of help and guidance isn't going to excite us, so you know, I'm very flexible on that. I'll tell you what I'm looking for most: I want to work directly with one of you. I know I just want to be a sponge and continue to grow into an excellent CEO.

I have to be honest with me, you are checking a lot of the boxes. Being a health and wellness guy, I can understand how this may fit into my other verticals. tons of stuff I'm getting into now something like this might be of interest yeah, I don't see five percent doing it for me. I'm going to order 20. I think you're going to need a significant amount. amount of help to build the infrastructure to run your business. I can tell you something? I was also going to make an offer of 20. I think it's a fair price and I think I have the experience to help in a really meaningful way.

If that's the case, Barb, then if you want, we'll split the 20, keep the bid at 500,000, and go 10 to 10. Great idea, that's our bid. I want to thank Barbara and Kevin very much for their first initial offer. I want to give the Sharks a chance to hear their offers, understood. I like that first initial offer. Interesting. Well, let me give you my first time. I'm really intrigued. I love the income. I love cash flow even more. You have both, so it's really impressive. Yes. I'm going to order more, in fact I'll give you the 500,000 for 30 percent and then I'll put Chef Wonderful behind it and sell it outright.

I sell millions of dollars in sous. -vide cakes wines spices whatever none of that has anything to do with this. I'm not going to do it for 20 because the amount of work and setup of this and actually fulfilling a giant direct-to-consumer play like QVC is actually very challenging. all the sharks are still in Alexio has two offers on the table, one from Kevin O'Leary and another from Kevin Hart and Barbara for the

transformation

of his Factory company. Thank you very much Kevin and Barbara. I love the fact that you guys are interested in what I would say. it's uh 20 is a huge amount for five hundred thousand they take thirty percent off current sales you know we're making over half a million a month in sales our profit margins are excellent there's a lot of room for growth that we've managed to make. this on our own and there are so many things because you don't know what you don't know, right?

Alexa, with all due respect, it sounds like you really need our help and expertise, especially when you want to turn left. in the retail space yes yes we know how not to tell you what to do you are the majority shareholder who certainly can have a say in what is prudent and what our experience has been to help you make a better decision yes I can't imagine You could go anywhere else place where you could get the notoriety that this character on my right, this cute little cake here, thank you Barbara, thank you yes, I agreed with you 100, my type of offer for Kevin and Barbara would be for 20,800,000 in the company, you I love it a lot and it sounds very juicy, but no thanks Kevin Barb, are you interested in fighting back and going to 600 and staying at 20?

Honestly, I feel like five hundred thousand dollars with the help he needs is the right number. do it with you in that place, okay, if you want to go 600, yeah, and keep it at 20, yeah, I'm telling you. I truly believe there is significant value in what you have here and I honestly believe in your growth potential and also you as a business person. I am convinced that you are going to need people who have relationships. I know that if Mark sides with me that makes whoever wants to talk on the phone I didn't even take a breath, don't judge well, that's a business, it's still a pie, no, not at all, so now you have an offer.

Yes, I love that offer. Mark, I'm a big fan. We are both vegans. I love it. uh 600 000 20 to work. It would be incredible if both of them closed a

deal

. Thank you so much. Thank you so much. Congratulations man. Thank you. I love your story. I love your story. Alright. Thank you. Thank you so much. Mr. Wonderful. Lori, yes. Dealing with Mark and Kevin is incredible and growing my business with them is a dream come true. Yes, like a round barber in the ocean. I believe that a story behind a product makes a product much better.