BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Next week could be interesting depending on what the Judge decides Friday. The first tranche was November 2nd for 59,998,666 shares for $0.00012 a share which tells us what conversion price they are entitled to. The 8K states that the second tranche was done per court order on the 21st of December. The order to stay further conversions for 30 days was dated January 16th. The appeal will be heard on Friday February 8th and apparently Blackstar will request an extension of the stay by the Nevada Supreme Court. That's right, they are making a Nevada Supreme Court case out of this. Getting an idea how serious the consequences of this lawsuit are. 😆

What we see that has been converted and the shares ordered under the preliminary injunction are just what GS Capital was entitled to when the request was submitted on November 2nd. Per the 8K this doesn't include interest and legal fees that may be owed. The 8K fails to say anything about default interest or the nasty penalty for failure to deliver shares. That language starts with $250 a day after the 4 day of failure to deliver with $500 a day starting on the tenth day past failure to deliver. So Blackstar has three attorneys working on what is now a Nevada Supreme Court case. Blackstar may be on the hook for legal fees for both parties which must end up in shares eventually because the company has zero revenue. Is this not one of the dumbest things over what was originally a remaining principal balance of $33,682. 🙄 I has expected a settlement of some sort so it is anyone's guess how bad this could potentially be for retail traders of this stock. Yep, retail traders because they will ultimately be paying for this nonsense. Make no mistake, there is an endless supply of retail money who will chase the press release for these zero revenue companies. 🤣

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

NOTE 10 – SUBSEQUENT EVENTS

NOTE 7 – CONVERTIBLE NOTES[list}
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.


FORM 8-K January 11, 2024
https://www.sec.gov/ixviewer/ix.html?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.

...and possibly additional recovery of legal fees and interest. The lawsuit increases the Company’s financial and administrative burdens and is a risk to the Company’s capital.

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.

Meanwhile, the preliminary injunction ordered the Company to honor the conversion requests of November 2, 2023 (for the conversion of 62,084,333 shares of common stock – completed December 21, 2023) and the three subsequent requests GS Capital claimed it “would have” made (62,023,333 shares, 65,168,333 shares, and 68,425,500 shares). In order to comply with the mandatory injunction, prior to the stay, the Company increased the share reserve for GS Capital Partners LLC and they subsequently completed the first two conversions.


GS Capital Partners Note
FORM 8-K October 11, 2021
https://www.sec.gov/Archives/edgar/data/1483646/000106594921000193/ex10_4.htm

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

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.