BlackStar Enterprise Group Inc (BEGI)

[Bubae]

...the Company could be exposed to further risks of lawsuits for similar issues. This statement was not an"opinion" of mine. This is a statement directly from the 8K last week and the third quarter 2023 filing. The defaulted Quick Capital note with the very nasty conversion language could be the next lawsuit. That converts at 50% of the lowest trading price during the delinquency period which is $0.0001. The $133K Quick Capital claim is the same number in filings more than a year old now.

If I were Quick Capital I would just wait and let the 24% interest accrue while the company works through the current mess of the lawsuit and debt conversions. While it may be attractive to go after their conversions at the current it is clear that Blackstar's stock is already grossly over subscribed with current conversions in the pipeline. Better to wait until they blow out this share structure and wait for a split. It will take shares to settle that one as well because Blackstar has zero revenue and a product that will not be monetized anytime soon if ever. Same story different dilution period. Now THAT is an opinion of mine. However, as usual, based on the company's own print. I do not peddle pure conjecture like that of the pumpers on this board.

You forgot, just the other day you were making predictions to me of a lawsuit in the future which may never even occur, and the exact verdict the judge will give in the case. I suggest just leave the opinions were they lie, read the chart, and jump when it says buy.

FORM 8-K
Date of report (Date of earliest event reported): January 11, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000003/blackstar8kjan232024.htm

At the outset of the case, a temporary restraining order was entered preventing the Company from trading any shares.[color=red][/color]

All of the litigation has occurred in the context of a preliminary injunction. BlackStar only recently responded to the complaint, seeking to vacate the existing orders and move the case to New York because of a forum-selection clause in the parties’ securities purchase agreement. That issue will be addressed at a hearing on February 8, 2024.

The Company sought reconsideration and a stay of the Court’s order requiring a mandatory injunction converting the Company’s shares. The Court denied the Motion to Reconsider but stayed the order of a mandatory injunction pending appeal for 30 days as of January 11, 2024. The Order staying the case was entered on January 16, 2024 upon the Court’s verification of a $10,000 security bond posted by the Company. The stay prevents any additional conversions.

The Company appealed the Motion for Preliminary Injunction and Specific Performance to the Nevada Supreme Court on January 12, 2024.

Such an extended stay would prevent conversions while the Nevada Supreme Court hears the Company’s appeal.

The Company may need to increase the authorized shares of common stock in order to accommodate any continued conversions, judgments, or settlements, and the Company could be exposed to further risks of lawsuits for similar issues. The Company will also expend additional resources in the ongoing litigation and any potential resolutions outside the above-reference conversions to common stock (which were already contemplated in the original convertible promissory note), negatively impacting its financial position.


For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17069009&guid=_Rd-knXj9h06Jth

ITEM 1A. RISK FACTORS
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.

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.