BlackStar Enterprise Group Inc (BEGI)

[Bubae]

The appeal scheduled for the 8th isn't over the merits of the case they are seeking a dismissal for a change of venue to New York. This has been denied once. The February 8th date is likely a non-event because Blackstar has filed an appeal to the Nevada Supreme Court. I am just certain that the Nevada Supreme Court is losing sleep over this case. 🙄 However, what I also found which is likely the basis of Blackstar's appeal is the text from the note linked below "... This Note shall be governed by and construed in accordance with the laws of New York..." This basis for dismissal has been denied so far but is the subject for the February 8th appeal. Not sure how a change in venue would helps but it does drag it out and would delay any new conversions.

What I see is a company, Blackstar, that agreed to some pretty egregious terms from a predatory lender and failed to delivered the shares because they had already issued so many shares already. Then they got caught flat footed with the lawsuit filing. Stupid is as stupid does and they are going to get hammered from what I see. This isn't the first rodeo for GS Capital. The 257 million shares is just what should have been issued when requested on November 2nd. add that to the 60 million at $0.00012 in the partial conversion and we get a roughly $38K total. What will it take to satisfy the penalties under the note that matured in October 2022, the language regarding the failure to deliver shares means that this note is technically in default. Default terms according to the note is 24% interest, "$250 per day the shares are not issued beginning on the 4th day"[/color] after the conversion notice was delivered to the Company"..."increase to $500 per day beginning on the 10th day...." Excerpt in the pic below from the original note 8K. Blackstar could also be on the hook for GS Capital's legal fees according to the 8K filed last week. They are likely spending a lot of cash that they don't have to defend against this lawsuit.




For the quarterly period ended September 30, 2023
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001483646/000106594923000100/begi-20230930.htm

ITEM 1. LEGAL PROCEEDINGS
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.


FORM 8K October 1, 2021
https://www.otcmarkets.com/filing/html?id=15300416&guid=czd-kH2IptwfJth

8. If one or more of the following described "Events of Default" shall occur:
(k) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion which includes an Opinion of Counsel expressing an opinion which supports the removal of a restrictive legend; or

Upon an Event of Default, interest shall

accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day.


15. This Note shall be governed by and construed in accordance with the laws of New Yorkapplicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York or in the Federal courts sitting in the county or city of New York. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

Convertible Promissory Note – GS Capital Partners, LLC
https://www.otcmarkets.com/filing/html?id=15300416&guid=czd-kH2IptwfJth#EX10_4_HTM