BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Likely no need to promote right now so no need for press releases and aggressive pumpers. The lawsuit is muddling along and we may have finally hit the lull between shares dumps. The holding period for all those shares issued in Q2 and Q3 2023 are probably all in the market now. GS Capital managed to get a the restraining order grated in mid November preventing Blackstar from trading any shares so that help dry up the dilution for a bit.

We know that GS Capital received some shares in December from the lawsuit proceedings and we have seen a couple of outstanding share count increases since the beginning of the year so count out 180 days for those to become available. We need to see the next filing to see how much, if any, of the S-1 offering debt was converted before the restraining order. Meanwhile the shares that could be issued from the lawsuit could be pretty dramatic and is why Blackstar is burning the cash they don't have defending it.


FORM 8K
Update to November 6, 2023 Nevada Lawsuit
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001483646/000106594924000003/blackstar8kjan232024.htm

...a temporary restraining order was entered preventing the Company from trading any shares...

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.


case number is A-23-881099-B, plug it into the court search query linked below.

https://www.clarkcountycourts.us/Portal/

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

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