BlackStar Enterprise Group Inc (BEGI)

[Bubae]

So with the dilution potential guess work out of the way is there any potential that this could chew its way through the 2s? Huge dilution dumps from the 6s down to the 2s and I suspect most who remain have averages in that range. These people see the dilution that will become available at the end of June and that is the tip of the iceberg.

We have a court docket update showing a court date of March 25th for what they are calling a "Mandatory Rule 16 Conference", From what I read it appears to be a pretrial conference or possibly a settlement? So this lawsuit is likely costing Blackstar a small fortune, cash they certainly don't have. They could also be on the hook for GS Capitals legal expenses to go along with the interest and penalties due on the now defaulted note.

We should get the annual filing the first week of April after the late notice which should reveal that the S-1 offering is still intact and the dilution that they had queued up for this promotional period was all stopped by the lawsuit restraining order. The company has zero revenue so I'm not sure what potential catalyst could be in the offing. At this point if I were to pick an entry I would have no expectation of flipping beyond 2. Bad news from the lawsuit could tip this into trips. As it is, Blackstar may need to increase the authorized share count if they intent to honor the share reserve requirements for the debt they still hold.

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

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/