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Eddie Middleton gives an assured pitch for his environmentally friendly electric patio heaters.

Duncan Bannatyne wants to know his financials over the last three years and Eddie reveals a succession of losses from £20,000 to £60,000. On these figures Duncan is sceptical about his valuation of £1.7million. Eddie, shaken by this, asserts that it is based on his year three figures and is premissed on getting the investment he is seeking.

James Caan picks up on Eddie's sales to date and is unimpressed by the slow uptake, despite the wet weather and the recession.

Duncan asks about manufacturing costs and Eddie stonewalls, much to the Dragon's irritation. Riled, he declares himself out.

Deborah Meaden and Peter Jones both pick up on this and say it is impossible for an investor to judge the profitability of a business based on margins and percentages rather than specific numbers.

A chastened Eddie back tracks and gives Peter the manufacturing costs he is demanding.

Theo Paphitis remains unimpressed. "I find you arrogant, rude and insulting", he opines. Whatever the merits of Eddie's product Theo could never do business with him and declares himself out.

James Caan admits he likes the product but is unsure about Eddie's commerical acumen. When Eddie volunteers the current markup price on one of his products, James is sufficiently impressed to make him a hypothetical offer: "If I were to give you half the money for 20% would you walk away?" Eddie reply is unequivocal - yes, he would walk away.

Peter Jones also thinks Eddie has a great product and, setting aside his earlier misgivings about him, is prepared to offer half the money for 25%.

Eddie immediately points out this is beyond where he is prepared to go. His reply prompts Deborah to declare herself out. If she was to make Eddie an offer it would not be as generous as either James or Peter.

Eddie asks the Dragons to reconsider their percentages and both are prepared to shave one point off - Eddie has an offer on the table of £255,000 for a huge 48% equity, three times as high as what he was hoping for.

Eddie points out he always wanted to retain 65% of his company and is not prepared to budge on that. Neither Peter nor James is prepared to lower their stake. The offer is withdrawn and Eddie leaves the Den empty-handed.

The deal done in the Den: Eddie Middleton rejects an offer of £255,000 for a 48% stake from James Caan and Peter Jones.

Last updated: 15 July 2009