Ann: 9 Spokes Channel Partner Update, page-7

According to page 97 of the prospectus, the Suncorp agreement was signed in April 2016. It was for 3 years with an option for another 3. Seems strange they would be bailing already considering they've already paid the implementation fee. The only costs to them would have been the monthly base license fee. The variable license fee would be almost nothing considering they had only a mere 500 "sign ups".

According to page 1 of the Appendix 4c announcement dated 29th July 2016, Suncorp Group had an "addressable base of 770,000 small business customers". This equals to a 0.06% conversion rate. For free software I would think that's quite low, if not theoretically zero.

Also, according to page 1 of the announcement dated 21 December 2016 "Suncorp is 9 Spokes’ second largest channel partner" and the "first major Australian channel partner to deliver 9 Spokes". To lose one of your largest and earliest partners is a huge red flag.

Now that Suncorp has bailed, it will make it easier for Barclays or Deloitte to pull the plug.