After leaping 4.8% higher in early trade, Droneshield Ltd (ASX: DRO) shares have given back those gains and then some.

In late morning trade on Tuesday, shares in the All Ordinaries Index (ASX: XAO) drone defence company are swapping hands for 92 cents apiece, down 2.1%.

For some context, the All Ords is up 0.5% at this same time.

Today's moves come as investors continue to mull over the implications of the company's capital raising along with some strong growth figures discussed at the annual general meeting (AGM).

Last Thursday, Droneshield shares entered a two-day trading halt after the company announced a $70 million institutional capital raising and a $5 million retail offer via a share purchase plan.

Yesterday, when Droneshield stock recommenced trading on the ASX, management announced plans for a second fully underwritten $30 million institutional placement This remains subject to shareholder approval.

The company intends to deploy the new funds to build its inventories amid a strong sales pipeline as well as up its capex on artificial intelligence (AI) and machine learning.

With new shares for both the institutional and retail offers being issued for 80 cents apiece, Droneshield shares have come down from the $1.12 apiece where they closed last Wednesday before the capital raising was announced.

But, as highlighted at the AGM, the growth outlook remains strong. This looks to be supporting the company's share price at 93 cents today, some 16% above the capital raising offer price.

Addressing shareholders at the AGM, Droneshield chairman Peter James noted:

The Ukrainian war, where Droneshield has been deployed since the start in February 2022 on the Ukrainian side, has demonstrated the potential of drones and counter drone systems on the battlefield, coupled with significant nonmilitary use cases for the intelligence community, airports, prisons, border security, stadiums, and other facilities.

And James highlighted the growth path Droneshield shares are on. He said:

Droneshield has continued to ramp up its mass production capabilities to the current $400 million annual capacity, across supply chain, inventory and deployment aspects, with the goal of immediate or short-term fulfilment of customer orders, including anticipated record-size orders.

In 2023, the company achieved a record $73.5 million in cash receipts. A record that could well be broken in 2024.

Despite the past two days of falls, Droneshield shares remain top performers on the ASX.

Shares are up 145% in 2024 and up 200% over 12 months.