On Thursday, Asiasons Capital Ltd said finance bourse operator and regulator Singapore Exchange (SGX) did not believe that the investment company had a strong mandate enough to command investor demand on their shares.

Asiason earlier announced last month that it would be selling 194.6 million shares at USD1.1948 per share to generate funds to acquire a stake in Black Elk Energy Offshore Operations LLC. Asiason plans to purchase a 27.5% stake in the US oil and gas company for USD171.65 million.

In a statement, Asiason indicated that the planned buyout was in jeopardy. It said, "The company shall engage with Black Elk and the seller to revisit and relook (at) the terms and conditions of the proposed acquisition."

SGX said in a stock filing on Thursday that Asiasons did not pass a certain rule that would allow the investment firm to issue new shares.