MULTY has tamed the Dragons' Den.
Cody New and MULTY Rack Systems partner Rick Sauder appeared on the popular CBC show Dragons' Den Thursday evening, where they struck a marketing deal.
MULTY, which has its head office in Armstrong and manufacturing plant in Kamloops, makes a variety of racks for trucks including sled decks, UTV racks, bike racks, headache racks, side rails, kayak racks and ladder racks.
“We got two Dragons in on a deal, Arlene (Dickinson) and Michelle (Romanow),” said New.
New and Sauder were asking for a $500,000 investment.
“We are able to sell at the same price point as our competitors that are made in China, except we make everything here in Canada so we can control the quality,” New told the Dragons during the episode which was taped in May 2023.
Sauder said the company did $1.2 million in sales in 2022 and admitted to the Dragons they need help with the marketing aspect of the company.
While several of the Dragons bowed out, Romanow initially offered $500,000 for 25 per cent plus five per cent in royalties until she got her money back.
Dickinson offered $500,000 with a seven per cent royalty until she got her money back. It would drop to four per cent ongoing.
Sauder said they were not willing to give up 25 per cent of the company, so Dickinson and Romanow agreed to team up and provide the $500,000 with 10 per cent royalty until the money is paid back, after which it drops to five per cent.
Sauder and New agreed to the deal.
“We did not have to give up any equity, which is good for us,” New told Castanet Friday.
The pair are now working with lawyers to finalize the deal.
“For MULTY, it's really going to help with our marketing and advertising because that is what the deal is for,” New said. “It's going to expand our business to more parts of the United States and Canada and it will be seen by more people.”
