rights issue and gearing lvl

coa is going to do a 1 for 6 rights issue priced at $4.50
to assist with payment of their recent acquisitions

gearing currently stands at 'about' 61% but will most likely come down as debt is repaid and so too the share price which in my humble considered opinion is still over priced and which might explain in part why mr dale elphinstone sold 1m shares recently?