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Plastc Bankruptcy & Shutdown
I first covered Plastc back in October, 2014. At the time of its announcement, Plastc seemed like a credit card replacement product that could work. Other products such as Coin had been announced as well, but Plastc promised both NFC along with Chip & PIN. I wasn’t sure if they could pull it off given the emergence of Smart Wallet programs, but I was hopeful.
In August, 2015 it seemed like they might have done it. They announced a “firm” launch date of April 29, 2016. During that announcement in August, they also offered a 2-4-1 sale and I bit. Yes, I spent $135 to purchase two Plastc cards. After all, it was a business expense since I planned to review the unit on this blog.
Of course April, 2016 came and went and the company had excuses for every delay. At one point they said a supplier backed out to do damage at an overseas factory. This year they continued to update their blog with promises of a late 2017 launch. That of course will never happen.
Plastc Is No More
Today Plastc announced their intentions to file Chapter 7 Bankruptcy. In a letter to “backers” (people who preordered) they explained that their latest round of funding fell through leaving them out of cash. Their entire staff has been laid off.
As you can see from the text below, it looks like they blew through all of their preorder cash and were relying on investors to actually fund all of the units they had “sold”. I had hoped this product would actually make it to market, but am not surprised in the least about these developments given the many delays.
Did you preorder Plastc? Let us know your thoughts in the comments.
We Regret to Inform You…
For the past 3 years, our mission here at Plastc was to build and deliver the most technically ambitious smart card on the planet. After making enormous leaps in development, product innovation and progress towards our goal, Plastc has exhausted all of its options to raise the money it needs to continue.
Plastc, Inc. is exploring options to file Chapter 7 Bankruptcy and will cease operations on April 20, 2017.
While we have fallen short of our goal, we are proud of our team and the effort that went into developing a working Plastc Card. However, without the necessary capital to continue, all employees have been let go, which means that Customer Care and Social Media channels are unmanned or have been shut down.
How We Got Here:
We were expecting to close a $3.5 million Series A funding round on February 28, 2017. There are functioning Plastc Cards, which were demonstrated to our investors and our backers, and the capital was to be allocated for the mass production and shipping of Plastc Cards to pre-order customers. At first, the principal investment group postponed their investment and a couple of weeks later the round fell apart.
After the initial funding was unavailable, Plastc made progress with another investor who offered $6.75 million. This deal was scheduled to close last week and would propel development across the finish line, as well as allow for Plastc Card pre-orders to be shipped and for production to continue into a retail phase.
However, once again at the very last minute, our investor gave us notice that they have decided rescind their investment offer. The round was a signature away from closing and we were extremely caught off guard when they notified us yesterday they were backing out. Our existing investors kept us alive and functioning as long as they could during this fundraising process, but in the end, we needed new outside capital to get into production.
What This Means For Backers:
It’s been a long road with a lot of obstacles. The support of our amazing backers has been incredible, which makes this announcement even harder. We were so incredibly ready for production in order to hit our deadlines but without capital it is impossible for us to move forward and we will not be able to fulfill any pre-orders.
We are disappointed and emotionally distraught, and while we know this is extremely disappointing for you, we want our backers to know that we did everything we could to make Plastc Card a reality.
– Plastc Inc.
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.