BlackStar Enterprise Group Inc (BEGI)

[Bubae]

The company issues 591,386,247 to 1800 Diagonal Lending over the course of the first nine months with nearly 487 million of that issued in Q2 and Q3. GS Capital Partners during this time was issued nearly 60 million shares as a partial conversion on their note. November 6, 2023, GS Capital Partners files a lawsuit over the unavailability of conversion shares seeking specific performance for the reserve of 700,000,000 shares for the balance of their note of $33,682. The link to the suit is below reveals that Blackstar has three attorneys employed defending this lawsuit over a note of only $33,682.

With so many shares already issued it appears that the company held back the GS Capital Partners share conversions. The S-1 offering received its notice of effect in July which advertises their hope to retire $803,275 of convertible debt, actual number is a bit less. There is a regulation "D" offering dated May 2023 for $125K. They have a lot riding on this patent news without the extra 700 million which would have blasted out the authorized share count. It is likely that they didn't anticipate the November 6th lawsuit.



Anyone wanting to keep up, case number is A-23-881099-B, plug it into the court search query link below.

https://www.clarkcountycourts.us/Portal/

For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17069009&guid=i8J-knLfpCMXB3h

ITEM 1. LEGAL PROCEEDINGS
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.

NOTE 7 – CONVERTIBLE NOTES

During the nine months ended September 30, 2023, the Company had the following transactions related to its convertible note financings:

> 1800 Diagonal Lending LLC converted, in three tranches, the outstanding principal balance of $23,600 together with accrued and unpaid interest thereon of $2,787 due on their note of May 5, 2022 into 75,643,939 shares of the Company’s common stock at conversion prices of $0.00033 to $0.00036 per share under the conversion provision and terms of the note agreement.
> 1800 Diagonal Lending LLC converted the total outstanding principal balance of $43,750 together with accrued and unpaid interest thereon of $2,788 due on their note of August 30, 2022 into 305,250,000 shares of the Company’s common stock at conversion prices of $0.00013 to $0.00026 per share under the conversion provision and terms of the note agreement.
> 1800 Diagonal Lending LLC converted, in four tranches, $37,200 as partial conversions of the principal portion of their October 31, 2022 note into 210,492,308 shares of the Company’s common stock at conversion prices of $0.00013 to $.0002 per share under the conversion provision and terms of the note agreement.
> GS Capital Partners made a $5,933 partial conversion, in two tranches, of the principal portion of their October 11, 2021 note together with accrued and unpaid interest of $1,267 into 59,998,666 shares of the Company’s common stock at a conversion price of $0.00012 per share under the conversion provision and terms of the note agreement.