>..my question to the board is whether this was adequate to raise money for a specific purpose and use it for something else.

Yes it was. Falcon raised $40 million to ensure that Falcon should be able to continue the operations in case they failed to sign a JV agreement. When Exxon signed the JV agreement they’ve become the sole operator for the contract area. Therefore Falcon had every right to use the capital for other purposes. In the end Falcon ended up owning 75% of the Beetaloo.