Connected IO is still struggling to get its customers to go on the record
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Connected IO has issued its fourth suspension update in a matter of weeks as the wireless networking provider tries to get two US customers to agree to be publicly named.
Connected IO will at least be able to reveal one customer next week, saying last night that it had approval from the cybersecurity company to publicly reveal their partnership at an IT conference in San Francisco.
The US company (ASX:CIO) dropped two agreements in March saying it had signed “a major US telco” and a “US based cybersecurity company”.
On March 9, Connected IO (ASX:CIO) announced it had signed “a reseller agreement with a major United States telecommunications company with whom it has had a historic relationship and the disclosure of which is considered commercially sensitive at this time”.
On March 13, the group told investors it had received “a purchase order from a US based cyber security company… The purchase order is for an amount of $349,000 and confirms recurring revenues from this customer.”
However, in March the ASX changed continuous disclosure rules around material contract announcements to require that customers be named.
Connected IO’s company secretary Nicky Farley told Stockhead the crackdown came on the same day that they lobbed the first announcement to the market.
She says they took a suspension to work the matter out so they don’t put the two deals at risk.
The ASX has been tightening its rules after the GetSwift (ASX:GSW) disclosure scandal, when the company allegedly failed to update the market twice when it lost material contracts and prematurely announced another.
The market operator now spells out specifically what companies need to say when they unveil material contracts.
Those details include the term of the contract, the nature of the product or service being sold, and, crucially, any conditions that need to be satisfied in order for the contract to be legally binding.
GetSwift told the market about an alleged contract with Commonwealth Bank, which the bank later said was just a trial and they didn’t formalise it once it finished.
Connected IO last traded at 2.8c.