BlackStar Enterprise Group Inc (BEGI)

[Bubae]

It really is bizarre for even a stinky pink ticker to be so irresponsible as to be in such a position over notes for as little as $33K. The consequences of the current lawsuit for not handing over the requested shares for the GS Capital note balance of $33,682 could be severe not to mention that the restraining order shut down Blackstar's ability to convert more debt while the sun was shining in November.

Then we have 2020 note of $33,275 for Quick Capital that matured on July 16, 2021 and was declared in default in April 2022. At the time of default Quick Capital was claiming $133,317 and with the $24% default interest that note should be well over $200K by now. This is a particularly nasty note with conversion language that calls for a 50% discount to the lowest trading price during the delinquency period. We see two dates just prior to the November runup of $0.0002.

The S-1 offering originally filed in July 2021 indicates that the proceeds are for three notes one being the Quick Capital note. The two other notes have principle balances as of September 30th totaling $597,534. This company doesn't show the current balance with interest in its filings for some reason. Those two notes matured nearly two years ago. The S-1 received its notice of effect in July 2023 and it is doubtful that it hit the price level needed prior to GS Capital obtaining the restraining order in November preventing Blackstar from trading any shares. We will see in the annual that should be released by the first week of April.


AMENDMENT NO. 10 TO FORM S-1
As filed with the U.S. Securities and Exchange Commission on June 16 , 2023
https://www.sec.gov/Archives/edgar/data/1483646/000106594923000063/blackstar_s1a10.htm


November 2020 Quick Capital Note 8K
https://www.sec.gov/Archives/edgar/data/1483646/000106594920000165/blackstar8knov252020.htm
Amounts Due in Events of Default:

Upon the failure to pay principal and interest, the Note shall become immediately due and payable. Upon the failure to issue conversion shares when Holder exercises said right, or other events of default outlined in the Note, then two times (2x) the Default Amount of the Note will become due and payable immediately. Any other form of default will entitle the Holder to (i) an immediate payment of one hundred fifty percent (150%) of the Default Amount, being the outstanding principal amount of the Note, plus accrued and unpaid interest on the unpaid principal amount of the Note, plus any default interest and any other amounts owed or ...

...and the Holder shall be entitled to use the lowest Trading Price during the delinquency period as a base price for the conversion with the Variable Conversion Price shall at the option of the Holder be redefined to mean fifty percent (50%) multiplied by the Market Price, subject to adjustment as provided in the Note.


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
In April 2022, Quick Capital LLC issued a notice of default on its $33,275 convertible note to the Company dated November 16, 2020 and stated that the outstanding amount due on the note is $133,317, the default interest per annum is 24%, and that the conversion price is the lowest trading price during the delinquency period with a 50% discount. The Company has recorded accrued default interest on the note at the rate of 24% per annum from May 24, 2021 (date of default) to September 30, 2023 based on the original loan value of $33,275. At September 30, 2023, the accompanying financial statements reflects an outstanding loan balance due to Quick Capital LLC of $33,275 and accrued interest of $9,569. The Company and Quick Capital LLC have been in discussions to reach a reasonable and fair settlement of the balance due on the financing agreement.