BlackStar Enterprise Group Inc (BEGI)

[Bubae]

OMG another dilution post 😆
A potential future plaintiff that may be referenced in company's comment regarding the lawsuit 'Company could be exposed to further risks of lawsuits for similar issues.' Keep in mind that these convertible notes have been dead in the water until the October run up. GS Capital Partners was quick to pull the trigger on their suit. The potential next one could be Quick Capital with their defaulted note dated April 2022. Talking about toxic terms - 'the conversion price is the lowest trading price during the delinquency period with a 50% discount.'the lowest trading price of .0001, conversion price of .00005, we are talking more than 2.6 billion shares. The company statement 'in discussions to reach a reasonable and fair settlement of the balance due on the financing agreement' Use your imagination as to what 'reasonable and fair settlement' will mean but the potential here is crazy and over a note that was originally only $33K. Now that the share price is up off the floor I would imagine they may take action soon.

For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17069009&guid=uNJ-kqA2mBVbdth

NOTE 7 – CONVERTIBLE NOTES

In April 2022, Quick Capital LLC issued a notice of default on its $33,275 convertible note to the Company dated November 16, 2020 and stated that the outstanding amount due on the note is $133,317, the default interest per annum is 24%, and that the conversion price is the lowest trading price during the delinquency period with a 50% discount. The Company has recorded accrued default interest on the note at the rate of 24% per annum from May 24, 2021 (date of default) to September 30, 2023 based on the original loan value of $33,275. At September 30, 2023, the accompanying financial statements reflects an outstanding loan balance due to Quick Capital LLC of $33,275 and accrued interest of $9,569. The Company and Quick Capital LLC have been in discussions to reach a reasonable and fair settlement of the balance due on the financing agreement.


A LAWSUIT WAS FILED AGAINST THE COMPANY ON NOVEMBER 6, 2023.

On November 6, 2023, GS Capital Partners LLC filed a lawsuit against the Company in Nevada regarding the unavailability of conversion shares relating to the Promissory Note entered into on October 11, 2021 and the remaining principal balance of $33,682. The plaintiff is seeking specific performance for the reserve of 700,000,000 shares, or damages in excess of $15,000, plus interest, costs, and legal fees. The lawsuit increases the company’s financial and administrative burdens and is a risk to the Company’s capital. Although the Company is attempting to settle the dispute by paying the note in full, there is no guarantee that this will settle the matter in its entirety. The Company may need to increase the authorized shares of common stock in order to accommodate any judgments or settlements, and the Company could be exposed to further risks of lawsuits for similar issues.