Chris Elsworthy secures investment for his Power8 Workshop in show on Monday.
The show, which aired on BBC2 on Monday, August 30, saw Mr Elsworthy demonstrate his Power8 Workshop for the dragons and secure funding of £150,000 from Duncan Bannatyne and Peter Jones for a 30% share of his company. It was also agreed that their share of Mr Elsworth's company would be reduced to 20% once the initial investment had been repaid.
The product, a four-piece power tool set, whose casing can be used as a portable workbench system, impressed the dragons. However, the complexity of the business structure saw Theo Paphitis, James Caan and Deborah Meaden bow out of making an offer. It transpires that there are several companies selling the product in the UK, Hong Kong and the USA. Mr Elsworth does not own these companies and is offering the dragons a stake in the holding company based in the British Virgin Islands.
The intellectual property rights to the Power8 also belong to a Hong Kong company that Mr Elsworth doesn't control.
Peter Jones and Duncan Bannatyne haggle with Mr Elsworth over their stake in the company, with Mr Bannatyne initially offering £150,000 for 40% of the holding company on condition that all the rights in the product are transferred over to the handling company.
However, the joint dragon investment was eventually agreed upon, with Mr Elsworth accepting £150,000 for Mr Jones and Mr Bannatyne taking a 30% stake in the business - reducing to 20% when he repays their investment.
Watch the episode here