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Rob Neuner and Mike Grice came to the Shark Tank in hopes of securing a $1,000,000 investment in exchange for 5% equity in their company, Boost Oxygen. Their flagship project is an individually packaged compressed oxygen canister that can help individuals ensure that they are getting enough oxygen during activities like hiking or exercising. Because oxygen is critical to heart and brain functions, Rob and Mike hope to make purchasing compressed oxygen as easy as purchasing bottled water.

Boost oxygen has sold approximately $6,400,000 this year with a net income of about $1,500,000. The Sharks are impressed that they are both profitable and have a 95% market share which very rarely ever happens in the Shark Tank. Although they are seeing great success, Rob and Mike would like a Shark that can help them expand their staff and work with retailers and brokers to ensure that their product is readily available to all consumers.

Guest Shark Rohan Ozo is concerned that it would take a lot of market education to continue to drive sales up. Right now they are trying to convince people that they have a solution to a problem that most people don’t know that they even have. Although the Sharks are impressed by the numbers, they quickly began to decline making offers to Boost Oxygen.

At the last minute, Kevin O’Leary decided to offer Rob and Mike a $1,000,000 loan over 36 months with 9% interest. With this deal, he would still receive 7.5% equity in the company. They were comfortable giving up equity in the company but they do not want to go into debt with this deal. After countering with Kevin, they come to an agreement of an investment of $1,000,000 at 7.5% interest and 6.25% equity in the company.

Do you think this was a wise investment for Kevin O’Leary? Would you purchase Boost Oxygen’s product? Begin the conversation in the comments below!

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