BlackStar Enterprise Group Inc (BEGI)

[Bubae]

They could have just announced the lawsuit in the Q3 filing statement but they went further with the statement "...Company could be exposed to further risks of lawsuits for similar issues." They are having issues with relatively small note like you said. The Quick Capital note was also originally a $33K note and is in default. Blackstar appears to be holding out for a "reasonable and fair settlement". 🙄 Under the terms of the note Quick Capital can convert at "...lowest trading price during the delinquency period with a 50% discount." The lowest trading price is $0.0001 during the period. They have using that amount due on the note is $133,317 since Q2 2022.

For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17069009&guid=25J-k6VdULSidth

ITEM 1A. RISK FACTORS
The risk factor included in the periodic report for the prior quarter ended June 30, 2023, is incorporated herein by reference.

The following additional risk factor shall be added:

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

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.