Entrepreneur Scares The Dragons Over Potential "Drugs Ring" | Dragons' Den

next into the den to entrepreneurs weary of one particular dragon we are worried about Peter because he's really scary oh he doesn't go for the kill but to survive in the den they'll also have to face the fire of four other dragons [Music] hello dragons my name is Michael Tkach and I'm Tim in skip and we're from Caron UK we're asking for an investment of fifty thousand pounds for 15% of our business we have the UK rights to the current portfolio products which are all made from cannabis sativa plant extract make how would you like to explain your story I am from the Czech Republic and I was working in the UK when industrial accident changed my life I damaged my arm and I lost several fingers on my hand amazing an injured surgeons transferred a tow from my foot to my hand during that times the pain was unbearable and the scarring was extensive visiting Frank from the Czech Republic brought me the car own appointment and another hemp products I started using them and their results was incredible so I like to share this experience with others and I approached current Czech Republic and brought these products to UK so we have 18 different products ranging from face cream shower gel hemp leaf tea and hemp seeds and they're all made from cannabis sativa commonly known as hemp we are vegan organic and totally legal as the products contain none of these psychoactive elements found in in cannabis but they're very high in the other elements known as cannabinoids which are currently proven to be beneficial in treating many different complaints we're passionate about cannabis sativa but we are plainly retail amateurs and we need the help of a dragon to guide us to manage our growth and fulfill our full potential thank you very much for your attention and we have some samples if you'd like to show what possible that we have the samples at the end is because I'm slightly worried if I have to take any of the samples I might make a wrong investment decision they have no suckers apical affect whatsoever yeah now they've reassured the dragons the products aren't mind-altering Tim inskipp and me Celtic arch can get on with the business of handing them out there looking for 50,000 pounds for 15% of their business selling cosmetics made with a cannabis extract but Pizza Jones is still confused about the legalities of the operation how can you convince me that this isn't a potential front for a big drug ring we have the we have EU sensitive all youth certification all the farmers are certified there's very strict law oversee these farmers what's stopping the company in Czech Republic the temptation to realize that they make a small amount of money on this but the real business behind the scenes is cannabis they grow into different blind entirely and it's it is illegal to grow different plants what Moe would make it restricted is the level of THC which is the psychoactive component of the hemp plant which it doesn't have so essentially it's legal it's not a restricted substance okay so I'm not gonna be an investor in some sort of illegal drug no absolutely not because of you're gonna go to our butter and you've given three different creams here the ones are bomb as let's bomb yeah and then these are its anointment is it all the same product sit no okay is this a cosmetic is it a medicine at the moment we marketed as the cosmetics we don't make her claims it helps people and we sell it out isn't that a major problem because a you can't tell anyone what the product does you just said it's an all-purpose hemp pointment I don't know if it's to moisturize and make my skin glow I don't know if wish to reduce pain for you know joint pain or injuries I've got this does have medical device certification in the EU in Czech Republic they have run the trials we are talking specifically about this product to get a medical device in the okay the point is that the evidence is that it does help in a very very wide range of different complaints and problems but we cannot say that we are going to cure any of this but you definitely can't say they don't have a medicines license to say that but what I'm saying is that you don't know what the products for who owns the company Karen know my friends in the Czech Republic your friends yes how much of the company do you own none none we'll check it probably nothing nothing basically our relationship is that macao developed some of the products in the Czech Republic brought them over to the UK and tell me what's your deal with this company they are my close friends so you've got to buy from them yes is there a minimum quantity of to buy no and your license with them is lost for how long - 2023 at the moment and can they terminate your contract early turn up now can I look at that agreement yes yes Tim what's your role in this business are you are you an equal share holder no I'm a minor shoulder at the moment the shareholders split how I only have 10% yeah I got a 90 and 10 I got a 60% of the company and we got another of my no shareholders which helped me on the beginning will be the start of the company and how much would they put in to help you from the beginning there was no more than 20,000 altogether I invest my owner over nearly 200,000 in in the business two hundred thousand pounds and what who's where has that been spent unwisely I did a lot of mistakes on the beginning I hired Ireland the warehouse ten and half thousand thousand square feet much big offices and hired people because I believe because I were watching the Dragons Den I want to do big it's all fall then there's Peters fault specifically no launching is for the SETI's well this is my time thank you so it's Peters that fall so he's not your favorite dragon that's good to hear so you made some mistakes in the beginning so how much would you write off of the 200,000 as a mistake [Music] a hundred thousand for sure right now you have absolutely no negotiating tools in here whatsoever on June the 3rd 2023 if you've done a cracking job you hand this business back to these guys there's nothing in here that gives you an automatic right of renewal from my point of view they will be only against themselves how they can do it without us after years well because you built their brand they've got a really really valuable asset over here why on earth were they renew mm-hmm job done market penetrated I'm not spending my time building somebody else's brand for them they won't be investing I'm out a lack of control over the future of the business has spooked Deborah Medan and it's left to KO suleiman wondering how an investor would get their money back my question mark here is the fact that you don't own the brand it's a distribution and there could be no exits yes well we believe at the moment the exit is to sell back to Karen check have you got agreement to that we are negotiate that agreement so you haven't got any grieve now look I'm not doubting the product amazing product as you say but you don't own the brand once you've created the brand the retail is what the brand I don't care about you I do wish you all the best because you're gonna make your friend rich I'm out okay touka Suleiman joined Deborah Medan in exiting over that controversial distribution contract antes Levani has some words of wisdom on the pair's plans to back up the potential benefits of the product products like this the most important thing is to show the effectiveness that it works you will need to do clinical trials and pretty much every region or territory that you launch it because it will have different licensing agencies and the cost of doing a clinical trial do you know much that costs in the UK to do a clinical trial like this about a hundred twenty thousand exactly to get them licensed will cost you a hell of a lot more you're gonna have to raise half a million pounds I'm at okay thank you okay thank you Michele Tim I'm concerned about the way that you've gone about setting this business up the hill particularly you where you've having friendships and in your home country is fantastic but what you should have done was if you had such a huge amount of money two hundred thousand pounds to invest you should have found a way to invest in the holding company in the Czech Republic I could have been potentially interested actually in something like this but ultimately you've brought a distribution agency style deal that I think isn't good enough so I'm out okay thank you Peter Jones's departure leaves Jenny Campbell as the last dragon standing is she able to see the potential for profit in a business her fellow millionaires have shunned so I mean this is a bit of a mess isn't it from where we're standing I'm sure you can see that you come into the den with a an exclusivity agreement you're halfway through and all sorts of issues on extending or minimum purchase levels how confident are you that you can renegotiate that exclusivity agreement on the book Alfie on a hundred percent confident okay so I think this is complex but I can see the belief in your eyes Mikkel and certainly you've come onboard to him with the same belief but I will make you an offer so I will offer you all of the money but because of the risk factors multiple risk factors in this deal I would want 25% of your business the garage for offer can we have a little discussion please go talk to the wall an eleventh-hour change of Fortune as Jenny Campbell backs her gut instinct with an offer but at 10% more than the entrepreneurs were offering they have a tricky decision on their hands thank you - for your offer be able to accept the offer [Applause] welcome to the cosmetic duo have given up a quarter of the company but leave the den with a 50,000 pound investment that's what we lost it I did say you shouldn't use their product before I can't wait to have a fancy yeah you'd like to meet Jenny as silly as possible it's pre share our excitement and our visions and maybe have a bottle of champagne yeah you

Channel: Dragons' Den

Views: 1,053,784

Rating: 4.8190374 out of 5

Keywords: bbc iplayer, united kingdom, british tv, british tv shows, watch uk tv online, watch british tv online, dragons, den, series, worst, pitches, funniest, moments, most, shocking, ideas, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, dragons den series 17, dragons den 2019, shark tank, shark tank 2019, new dragons den, new shark tank, sara davies, tej lalvani, touker suleyman, New episode, full episode 2019

Id: 9p2UNon_dvo

Length: 12min 26sec (746 seconds)

Published: Sat Sep 28 2019

Reddit Comments

[u/Shounenbat510]

THIS is the product she decides to give an offer on? The one with multiple red flags?!?