BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Earlier in the month we saw an update on the court docket for a "mandatory rule 16 conference" indicating that the GS Capital lawsuit was going to trial. An update last week shows that the rule 16 hearing was cancelled and now we have a new hearing scheduled for April 22nd. Looks to me like a settlement may be in the works. We know that they have been issuing shares to GS Capital beginning in December so expect those to be vested by the end of June. From there on this stock will see a steady stream of new share sales.

Blackstar attempted to settle the note after the lawsuit was filed for $51,196. So we can assume that Blackstar concedes this is the new value of the note at a minimum. We also know from the lawsuit update 8K that GS Capital secured a conversion price for the note with the November 2nd conversion requests at $0.00013. Using that conversion price we could see roughly 400 million shares to settle the lawsuit if $51K is the number. Next question is how long does the restraining order preventing Blackstar from trading new shares remain in place? They had a boatload of other conversions line up for this promotional period and it has been shut down since mid November.


Update to November 6, 2023 Nevada Lawsuit
Date of report (Date of earliest event reported): January 11, 2024
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001483646/000106594924000003/blackstar8kjan232024.htm

The Company attempted to resolve the dispute by paying the note in full. Plaintiff accepted full payment. However, after accepting full payment, and in the context of a preliminary injunction, the Plaintiff requested specific performance (a mandatory injunction) to obtain conversion of certain shares based on Plaintiff’s representation that it “would have” made conversions prior to the payoff it undisputedly accepted.

Meanwhile, the preliminary injunction ordered the Company to honor the conversion requests of November 2, 2023 (for the conversion of 62,084,333 shares of common stock – completed December 21, 2023) and the three subsequent requests GS Capital claimed it “would have” made...


Update to November 6, 2023 Nevada Lawsuit
Date of report (Date of earliest event reported): February 27, 2024
https://www.sec.gov/ixviewer/ix.html?doc=/Archives/edgar/data/0001483646/000106594924000023/blackstarmarch2024v2.htm

...the Company invokes several affirmative defenses that bar Plaintiff’s recovery in the action and alleges that Plaintiff breached the terms of the agreement, including, but not limited to, obtaining the conversion of BlackStar’s stock after the Promissory Note was fully paid off.

Amongst other claims, the Company alleges that the Plaintiff acted in bad faith and in violation of usury laws by recovering an estimated $600,000 dollars in BlackStar stock off of a $60,000 promissory note, estimated at a roughly 170% interest rate....


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

ITEM 1. LEGAL PROCEEDINGS

Subsequent to the end of the period covered in this filing, on November 6, 2023, the Company was notified of a lawsuit filed in Clark County, NV against the Company by GS Capital Partners LLC 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 sought specific performance for the reserve of 700,000,000 shares, or damages in excess of $15,000, plus interest, costs, and legal fees. The Company has paid the note in full on November 15, 2023 totaling $51,196.71 in cash and issued no shares. The Company is attempting to settle the dispute.


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

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