It was known at the time that DRO took way too much cash. Very obviously if it really needed the cash, it would have asked for more in the initial raising.
They day before the announcement of the capital raising (1/2) DRO closed at 37c. The capital raising occurred on the 2/2 when they announced the $13.9 M capital raising. After the initial raising it fell quickly to 31c before fully recovering to close at 37.5c on the 6/3. That tells us that the initial CR was a slight negative but not hugely negative. The following day (7/3) when the extra $26.4 M was announced the price began to fall and never recovered even to the point of the lowest sale between the two announcements reaching a low of 21.5c by the end of June. At the time there were also huge complaints about the second raising.
Your point about not landing the 33M contract is not valid, because if that was the case DRO would not have put on the staff that they did and would not have built up inventories, so they would have been fine with cash. They would have had 20M in the bank and were burning about 2-3 M per quarter. So they would have cash for two or three years and were saying they would be cash flow positive well before then.
Your comment that "without the capital that was raised the current share price would be trading lower than it is now" is not credible. The only concern about cash is whether the company has enough. Even without the capital raising it would still have $25 M in cash. The share price would be 20% higher because the market cap would be the same because the company is valued according to future sales.
DRO Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
(20min delay)