BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Might want to consider what I was saying back in December about the holding periods for these note conversions. Post# 7964 dated December 23rd details the issuance periods and when groups of shares may become available based on outstanding share count figures taken from the filings. Based on the data I said that share conversions from the two week period the second half of June could have become available the second half of December. December 22nd we start seeing red candles and on the 28th, the day after the press release, the stock closed down 40% for the single day. By January 4th it was down 70% from the open on December 28th.

Two articles below dated 2023 about the SEC coming down on lenders failing to register as dealers and dumping unregistered shares. The consequences of SEC action in the cases described is severe. I would imagine that these lenders banking such huge profits as it is from their average conversions of only $0.00017 may want to dot their i's. If that is the case these lawsuit shares will be rolled out in the months well into 2024. Take the partial conversion that GS Capital received before filing the lawsuit of 59,998,666 shares. We know from the 8K that GS Capital made their share requests on November 2nd so the 180 day rule 144 holding period would take eligibility out to the beginning of May. The GS Capital December 21st court ordered conversion of 62,084,333 shares, will that be June 2024 or do they start the clock from November? You see that the tranches of shares are issued in the neighborhood of 60 million for GS Capital. Per the rules and the language of the notes the lenders are limited to conversions of less than 4.99% of the total issued and outstanding common stock of the Company.

So we see the share count increase in January, we have had one for February so far, count 180 days... you get the picture. We will see how this goes but Blackstar isn't running infomercials just for everyone's entertainment. 🤣


Bubae
Re: None
Saturday, December 23, 2023 10:12:19 AM
Post# 7962 of 11675
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173492266

...That two week period between June 14th and June 30th yielded 243,787,128 new shares issued. The six month holding period would move this time slot to begin this past week. Next we see 100,492,308 shares in two tranches issued in July per the subsequent events note in the June 30th quarterly filing. I next have an August 4th date showing 1,134,572,435 shares outstanding and another showing 1,244,572,435 as of November 1st which is also the current outstanding share count. Those two values show that 110,000,000 new shares where issued during that period...

Bubae
Re: None
Friday, February 16, 2024 8:55:40 PM
Post# 11665 of 11668
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173867460

Another good example of how traders of this stock got played. Look at the December 28th dump, the day after the press release down 70% by January 4th...

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

During the nine months ended September 30, 2023, the Company issued shares of its common stock as follows:

• 698,077,221 shares for conversion of $116,725 principal and interest on convertible notes payable.
  
  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.

https://www.sec.gov/Archives/edgar/data/1483646/000106594921000193/ex10_6.htm
...and the number of shares to be issued are less than 4.99% of the total issued and outstanding common stock of the Company, such shares should be issued either

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.