The Australian Securities and Investments Commission (ASIC) has stopped Insured Group’s plans to raise $2.25 million.

The regulator issued an order stopping the capital-raising proposed in a prospectus issued on May 17.

An ASIC spokesman would not give reasons for the stop order.

Insured Group has not made any public announcements on the stop order either, which might breach New Zealand Stock Exchange (NZX) listing rules.

A NZX spokesman told insuranceNEWS.com.au the exchanges listing rules require “any item of information that could influence the share price to be disclosed”.

insuranceNEWS.com.au asked Insured Group MD Wayne Miller about the impact of the stop order and if the company is preparing a revised prospectus that would satisfy ASIC’s concerns.

Mr Miller declined to comment.

The capital-raising has been seen as critical after the company’s auditors Grant Thornton expressed concerns about “the material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern”.

Insured Group directors in the capital-raising prospectus said they believed the exercise would be successful and it would help to return the business to profit after a $1.1 million post-tax loss for the six months ending December 31.