BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Do you know anything about websites? This is supposed to be an IT related business and they can't keep a website rolling during updates? A kid these days can post and maintain a few static pages of content. I do not see an underlying business here at all and they are generating zero revenue.

The majority owner of BlackStar Enterprise Group is International Hedge Group, Inc, a merchant banking entity. I'm thinking that this is an important point to remember when watching the daily trading of this stock. When you review the trading you can see the cycle of sell offs and large buys to start the next walkup.

The method patent is all there is right now and the news that it was approved is technically more than a month old now. The patent is all that is driving the speculation and it is intended to support their BlackStar Digital Trading Platform TM (BDTPTM). Reading further in the S-1 offering reveals their admission about the regulatory obstacles could take years to overcome. Because of these regulatory issues, they claim, that the "aim" is to sell their own stock on this platform? '...BlackStar’s aim is to develop BDTPTM, a digital share trading platform, to trade free-trading BlackStar common stock only...'

Exactly what is being sold here to justify the recent price appreciation?


S-1 Offering
https://www.otcmarkets.com/filing/html?id=16735041&guid=p7J-kFOezEj4B3h

The Majority Shareholder of BlackStar Enterprise Group, Inc. submitted written consent to the shareholder resolutions described in this Information Statement on or about July 8, 2022 to be effective on or about 20 days after the date of mailing. As of July 7, 2022, the Majority Shareholder beneficially holds of record 104,792,702 shares (assumes the conversion of the 1,000,000 Class A Preferred shares beneficially owned by International Hedge Group, Inc.) of common stock issued and outstanding. As of July 7, 2022, the voting rights of the Majority Shareholder was equal to at least 60% of the total voting rights because of the super majority voting preference attached to the Class A Super Majority Voting Preferred Stock. Class A Super Majority Voting Preferred Stock, of which International Hedge Group, Inc., our parent company owns 100%, has that number of votes equal to that number of common shares which is not less than 60% of the vote required to approve any action and has the right to convert all of the Class A Preferred Convertible Stock (1,000,000 shares) into shares of Common Stock of the Company, on the basis of 100 common shares for each share of Class A Preferred Stock. The Majority Shareholder, International Hedge Group, Inc., is controlled by our Chief Financial Officer and director, Joseph Kurczodyna. The remaining outstanding shares of common stock are held by approximately 359 other shareholders of record.


Regulatory Challenges of our Business Concept (BDTPTM)

BlackStar has always recognized that digital equities must be registered or otherwise have an exemption from registration within the existing SEC regulations and guidelines. BlackStar’s aim is to develop BDTPTM, a digital share trading platform, to trade free-trading BlackStar common stock only. The regulatory challenges presented come from integration of the platform into the existing broker-dealer ecosystem, approvals/advice of and compliance with the rules and regulations of OTC Markets Group, SEC, FinCen, IRS, anti-money laundering rules, or FINRA. These rules encompass the functionality of the system, cybersecurity laws, and state and federal financial laws. No assurance can be given that such regulatory approvals will be obtained in a timely manner or at all.

SEC Approval

Our first regulatory challenge is seeking the approval of the Securities and Exchange Commission (“SEC”) of our concept for a security that could be traded on the BDTPTM because the SEC has not yet adopted rules or regulations specific to the digital securities industry nor any regulations involving blockchain or distributed ledger transactions. The SEC has chosen to enforce its existing anti-fraud laws and the registration rules and regulations. Accordingly, we must work through an undefined SEC approval process for our proposed system. We anticipate many comments and questions from the SEC during any approval process for the BDTP platform. We anticipate that could take one to three years to complete the approval process for the BDTP platform.

FINRA
Our next regulatory challenge is that our concept requires implementation by a broker dealer registered with FINRA. We do not anticipate registering our company as a broker dealer, but instead would contract with a broker dealer to act as our agent/intermediary for our concept, thereby alleviating our Company of all regulatory compliance issues of a broker dealer.

...we do not believe it would be constructive to commence substantive negotiations with a FINRA regulated broker dealer until we have substantially completed the SEC approval process. Once we believe we have substantially completed the SEC approval process, we believe it may take an additional six to twelve months to reach agreement with a FINRA regulated broker dealer.