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

Summary

Alexio Gibson, founder of Transformation Factory, shares his inspiring journey from weighing over 500 lbs at 21 to losing 300 lbs and creating a business around sea moss, a nutrient-dense marine algae. Seeking a $500,000 investment for 5% equity, Alexio highlights his product's health benefits and growth, including $3.5 million in sales in just 11 months. Sharks Kevin and Barbara make a joint offer for 20% equity, ultimately agreeing to a $600,000 investment. The pitch showcases Alexio's dedication to health, his business acumen, and the potential for massive growth in the health and wellness market.

Takeaways

• 😀 Alexio Gibson is the founder of a company that sells sea moss gels and is seeking $500,000 for 5% equity in his business.
• 😀 At the age of 21, Alexio weighed over 500 lbs and was told he wouldn't live past 30, which motivated him to lose weight and get healthy.
• 😀 Alexio lost over 300 lbs through a combination of exercise, a healthy diet, and incorporating sea moss into his daily routine.
• 😀 Sea moss contains 90% of the essential minerals the human body needs, including zinc, iodine, and benefits for the gut and immune system.
• 😀 The Transformation Factory produces sea moss gels in different flavors like mango, strawberry banana, pineapple dragon fruit, and elderberry.
• 😀 The sea moss gels are sweetened only with organic agave syrup and are designed to provide a healthy, nutritious supplement.
• 😀 Alexio's company generated $3.5 million in sales in just 11 months, with a 35% profit margin, resulting in $1.4 million in profit.
• 😀 The product is sold 100% direct-to-consumer online, and Alexio’s story started with sharing the sea moss with people, including his grandmother.
• 😀 Alexio wants to use the investment to create a 'Transformation Factory' for production and shelf-stabilizing the sea moss gels for retail distribution.
• 😀 Alexio has no partners, no debt, and is the sole owner of his company. He is seeking financial expertise and guidance to scale the business further.
• 😀 Several investors made offers, including Barbara and Kevin offering $500,000 for 20% equity, and Kevin offering $500,000 for 30%. After negotiations, Alexio accepted a deal for $600,000 for 20% equity with Barbara and Mark.

Q & A

What was Alexio Gibson's reason for seeking investment in his company?

Alexio Gibson was seeking $500,000 for 5% equity in his company to scale his business, 'The Transformation Factory,' which produces sea moss gels. He wanted to expand his operations, including getting his products on retail shelves.

What personal transformation did Alexio experience that led to the creation of his company?

At 21 years old, Alexio weighed over 500 lbs and was told he wouldn’t live past 30. He decided to take control of his health, worked out more, ate healthy, and went vegan. During his transformation, he discovered sea moss, which became a key ingredient in his life and business.

What is sea moss, and why is it important in Alexio's products?

Sea moss is a marine algae that contains 90% of the essential minerals required by the human body. Alexio created a line of sea moss gels to help people meet their nutritional needs and improve their overall health, as he believed it was a powerful and nutrient-rich product.

How much do the sea moss gels cost, and what is their intended benefit?

The sea moss gels are sold at $24.99 for an 8 oz jar. The intended benefit is that by consuming just two tablespoons per day, individuals can get 90% of the essential minerals needed for good health.

How did Alexio start his business, and what was his initial distribution method?

Alexio started by giving away sea moss products for free to people, including healthcare workers and his grandmother. He shared his story on social media, which led to organic growth, and eventually, he launched an online store to manage the growing demand.

What were Alexio's sales figures, and how did his business grow in its first year?

Within the first 11 months, Alexio's business reached $3.5 million in sales. His online store grew rapidly, with an 800% increase in sales between February and March, thanks to targeted ads and SEO traction.

What is Alexio's current profit margin, and how is he managing his finances?

Alexio reported a 35% profit margin, equating to $1.4 million in profit. Despite the profits, he has reinvested a significant portion of the money back into the business to continue its growth and maintain healthy cash flow.

What are Alexio's future plans for his business, and how does he plan to use the investment?

Alexio plans to use the investment to build a 'Transformation Factory' where he can shelf-stabilize his products and scale his production. His goal is to eventually get his products on retail shelves.

Why is Alexio only offering 5% equity for $500,000, and how did he respond to the Sharks' feedback?

Alexio offered 5% equity for $500,000 because he is flexible and values mentorship and expertise over financial support. When the Sharks expressed concerns about the 5% equity, he was open to negotiating and expressed a desire to learn from them.

What were the Sharks' offers, and how did the negotiations unfold?

Kevin O'Leary initially offered $500,000 for 30% equity, citing the difficulty of the business model. Barbara Corcoran and Kevin offered $500,000 for 20% equity. Eventually, Alexio accepted an offer of $600,000 for 20% equity from Mark Cuban and Barbara Corcoran, emphasizing the value of their mentorship and expertise in helping him scale his business.