BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Pumping pretty hard there. 😆 [i[color=red]]"No sellers are appearing on the radar,.."[/color] shows that you don't consider what is in the filings at all. The GS Capital lawsuit restraining order was entered preventing the Company from trading any shares since November 9th and they had a ton of dilution in the pipe line queued up for this promotion. If you look at how low the float could have been at the beginning of this run up you will find that the circumstances are much different now. Add to that the promotion across all social media that fuel the speculative fervor and that is all gone now that facts from the filings has revealed the fiction.

The preliminary injunction ordered the Blackstar to honor the conversion requests of November 2, 2023. GS Capital received the first tranche December 21st before a stay order was granted to Blackstar. That 30 day stay is up next week unless the court extends it. We also know from the partial conversion dated November 2nd that the GS Capital note language secured a conversion price of only $0.00012 per share. If they received their shares on November 2nd the day they requested it and they could have banked 96K from the sale with a closing price of $0.0016, but of course they likely didn't. The closing price by Monday November 6th was $0.0048 or $288K on the 96 million shares. The truth is probably somewhere in between but you can see how much just this original conversions will cost retail traders of this stock. Now maybe understand why the promotion here was so heavy. GS Capital only had a small share of the conversions, Diagonal Lending made a bloody fortune. My question is if they dumped those shares without observing the rule 144 holding period will they attract attention of the SEC. They could be targeted because the profits were obscene and there would be a lot to go after.

No sellers are appearing on the radar, but the sonar has detected some smart whales for some time....

...Another week will help confirm it, if it moves up on the same lower volume without flippers exiting in mass between .18 and .30 That will be watched, and could be HUGE.!

FORM 8K 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...


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 7 – CONVERTIBLE NOTES

• 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.

What Toxic Financing Is And How Public Companies Can Avoid It
PUBLISHED
MAR 16, 2023 10:31AM EDT
https://www.nasdaq.com/articles/what-toxic-financing-is-and-how-public-companies-can-avoid-it
Additionally, convertible note issuers with a track record of driving toxic financing deals generally limit the holding period on their notes to six months for SEC-reporting companies. The Securities Act of 1933 requires all unregistered securities acquired directly from the issuer to be held for at least six months, which is why a six-month timeframe is often given as the holding period on toxic debt.

Press Release
Stock Issuers & SEC Taking the Fight to ‘Toxic’ Lenders
by Howard Mulligan August 15, 2023 in Financial Services
Agency bringing actions against convertible noteholders for failing to register as dealers
https://www.corporatecomplianceinsights.com/sec-toxic-lenders/#:~:text=Since%20early%202020%2C%20the%20SEC,required%20by%20the%20Securities%20and

In March 2022, a Florida district court dealt with a defendant that purchased convertible notes of over 100 microcap issuers, converted the notes into shares of stock at massive discounts and then dumped over 17.5 billion shares into the public market, generating over $21.5 million in profits.

In August 2022, the SEC initiated an action for failure to register and then entered into a settlement with a noteholder that, from 2016-2020, purchased approximately 250 convertible notes and profitability sold the converted shares. In the settlement, the defendants agreed to (1) pay disgorgement and prejudgment interest of $8,390,601.27, (2) the entry of a civil penalty of $810,307 and (3) a five-year suspension from acting as a penny-stock dealers.