BlackStar Enterprise Group Inc (BEGI)

[Bubae]

No settlement from GS Capital which is why this is going to trial. The nasty default language in these toxic notes is intended to induce a company to fulfill their obligations under the note. Blackstar for some reason believes that they will determine what, when and how they will pay their notes. It is the same with the Quick Capital note that that matured in July 2021 and has been in default since April 2022. Despite the especially egregious terms of default under the Quick Capital note Blackstar failed to fulfill their obligations under that note as well. That note only had a principle balance of $33,275 which now with penalties and default interest should be well over $200K. Now Blackstar states in its Q3 filing that it is holding out for a "...reasonable and fair settlement of the balance..."As if the terms of the note neglected to spell out what Blackstar agreed to as being fair as reasonable when they signed the note. Three notes in the S-1 offering with one being the Quick Capital note in default. The other two notes have a combined current balance of $597,534 as of September 30th and even those matured two years ago as of April.

Bubae
Member Level
Tuesday, February 06, 2024 7:08:19 PM
Post# 11220 of 12168
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173789412&txt2find=failure%2Bdeliver


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

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.

Quick Capital convertible note to the Company dated November 20, 2020
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 (ii) at the option of the Holder,...

...Further, if a breach of Sections 3.9, 3.10 and/or 3.19 of the Note occurs or is continuing after the six (6) month anniversary of the Note, then the principal amount of the Note shall increase by Ten Thousand and No/100 United States Dollars ($10,000) (under Holder’s and Company’s expectation that any principal amount increase will tack back to the Issue Date) 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.