BlackStar Enterprise Group Inc (BEGI)

[Bubae]

Well OK, lets step through this. My comment that they aren't able to get their debt refinanced is based on a bit of conjecture and I usually can point to the direct words of the company as evidence. To say that they aren't able to get refinanced is to give them the benefit of the doubt and not say that they are really ignorant when it come to finance. Blackstar claims to be in the Merchant Banking business and the CEO biographical information suggests that he does know something about financing.

Blackstar is currently being sue over a note that had an outstanding principle of only $33,682 as of the November 6th lawsuit. So instead of refinancing the debt they decided to also deny GS Capital's request for conversion shares on November 2nd. The judge has already awarded GS Capital 257,701,499 shares in the preliminary injunction to cover the principle balance. Now there is a bench trial scheduled for January 2025 for the interest, legal fees and costs. Potentially a settlement in the April court hearing? More information in post# 12113 which includes the link to the court docket information. Maybe it would have been better to simply refinance that debt if possible?

Next up is the $33,275 Quick Capital note that is in default. That note matured on July 16, 2021 and was declared in default nine months later in April 2022 with a stated balance of $133,317 at that time. Now I'm not a finance guy but would it have not been a better idea to refinance at the time. That is one nasty note and more than anyone would want to now about it is in Post# 12649.

The S-1 offering has three notes listed with registration rights and received its notice of effect July 2023. Two of the notes had principle balances totaling $597,534 as of the Q3 filing and matured a couple of years ago. The third, Quick Capital note has been in default since April 2022 and is being disputed by Blackstar though not currently in litigation. I suspect the reason Blackstar didn't issue the shares to GS Capital is to give the notes in the S-1 offering a chance to convert at its price level. This may have been thwarted by the restraining order that GS Capital was able to get in early November preventing Blackstar from trading any shares. We shall see in the annual filing coming if the status of those notes has changed. Think Blackstar could have gotten those notes refinanced in the past couple of years.

Eight, nine months notes with principles totaling $300K. Think they like what they see with the lawsuit cash burn and the old notes that can't convert? Looks like $175K of the notes plus interest will have matured by May 1st. More on that in Post# 12656 with links to the information. Think that they are going to get these refinanced?



S-1 Offering Prospectus
https://www.sec.gov/Archives/edgar/data/1483646/000106594923000063/blackstar_s1a10.htm

Company Overview

We are based in Boulder, Colorado and are [color=red]engaged in Merchant Banking and Finance in the United States[/color]. BlackStar’s venue is private early-stage companies throughout various industries that, in our judgement, exhibit a potential for sustained growth. We are a publicly traded specialized merchant banking firm, facilitating joint venture capital to early-stage revenue companies. We are actively seeking opportunity for discussion with revenue generating enterprises and emerging companies for financing.

BIOGRAPHICAL INFORMATION

Joseph E. Kurczodyna, Chief Executive Officer, Chief Financial Officer and Director
...Mr. Kurczodyna purchased Mills Financial and was the firm’s President and General Principle. While leading Mills Financial, he underwrote and funded several private placements and IPO’s. In 1998, Mills was the lead underwriter for United Financial Mortgage Corp. (UFMC), which was eventually listed on the American Stock Exchange. From 2004 to 2009,...


Bubae
Re: None
Wednesday, March 13, 2024 1:14:51 AM
Post# 12113 of 12707
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174027735

So I see a request for shares by GS Capital date in the January lawsuit update 8K of November 2nd 2023. Then GS Capital files the lawsuit on November 6th followed by the granting of the restraining order by the court on Blackstar dated November 9th according to the docket schedule. We do see an attempted payment by Blackstar dated November 15th in the Q3 2023 filing. I say attempted payment because this is what Blackstar states in the January lawsuit update 8K "...The Company attempted to resolve the dispute by paying the note in full..."

Bubae
Re: burner67 post# 12629
Sunday, March 31, 2024 1:19:00 PM
Post# 12649 of 12707
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174147406&txt2find=GS%2BCapital

The Quick Capital note is particularly nasty. The $33,275 note matured on July 16, 2021 and was declared in default in April 2022 with a stated balance of $133,317 due under the default terms of the note at that time. That note now would be worth more than $200K with accrued default interest of $24%.

...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....

Bubae
Re: None
Sunday, March 31, 2024 2:43:55 PM
of 12707
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174147686&txt2find=two%2Bnotes

Eight, nine months notes with principles totaling $300K. Think they like what they see with the lawsuit cash burn and the old notes that can't convert? Looks like $175K of the notes plus interest will have matured by May 1st. Two matured in December two more in February and the fifth due on May 1st.