(Bloomberg) -- Australian sales software developer Bigtincan Holdings Ltd. has drawn opposition to a possible equity raising from its largest shareholder and suitor.

Technology investor SQN Investors LP sent a letter to the Bigtincan board Wednesday objecting to what it said would be a “potentially highly dilutive” and “value-destructive” move by the company. SQN lodged a take-private offer to the company last month valuing it at about A$442 million ($297 million). 

The Australian Financial Review reported on Wednesday that the company was weighing a A$30 million institutional placement. A representative for Bigtincan did not immediately respond to requests for comment.

Any move by the company to raise equity “would seem hasty and value-destructive following your receipt of our bona fide acquisition proposal that would offer the company and its shareholders a significant all-cash premium,” the fund said in the letter, obtained by Bloomberg News. The firm’s “financial profile as a public company is becoming increasingly untenable given its continued cash burn,” underscoring the conviction that the firm should go private, SQN said.

SQN offered in early November to take the company private for A$0.80 per share, an offer it said at the time represented a 46% premium to Bigtincan’s 30-day average price.

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