BlackStar Enterprise Group Inc (BEGI)

[Bubae]

I actually have filed on this subject of the defaulted note. From what I see given the other numbers stated in the 10K it appears to me that that they settled that note for far more than the 22,900,757 shares in the 10K Filing. Depending on when those shares were dumped Quick Capital could have made an obscene profit off that note with an original principle of only $33,275. The second question for that transaction would be, did Quick Capital immediately dump those unregistered shares into the the market to take advantage of the price level after runup in late November.

You might note that the two 8K filings for the lawsuit updates were in January and February 2024 and contain the line "...the Company could be exposed to further risks of lawsuits for similar issues...". The settlement for the defaulted Quick Capital note was reported to have been done in Q4 2023. The GS Capital lawsuit is over a principle balance of what was only $33,682. The defaulted Quick Capital note had an original principle of only $33,275. So Blackstar has gotten into trouble over some relatively small notes and doesn't mind burning cash on billable hours for lawyers. All borrowed funds of course.

Now consider that the two remaining notes in the S-1 offering are still intact as of the current filing with principle balances outstanding of $584,079 and matured two years ago. Those notes with interest would be worth North of $800K now. The S-1 only registered 46 million shares and appears to be of little use to settle these notes. Form D filings done at the time the notes were written but would not be enough from what I see and would represent restricted shares. What happens if either of these lenders exercise their rights to convert at 50% discount to market under the terms of the notes. Does Blackstar tell these lenders to shag off like they did GS Capital and end up in another very costly lawsuit? I leave it up to Blackstar to detail the possibilities it is their statement after all. All we can do is look at the possibilities since they broached the subject.



FORM 8-K
Date of report (Date of earliest event reported): January 11, 2024
Update to November 6, 2023 Nevada Lawsuit
https://www.sec.gov/ix?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.

FORM 8-K
Date of report (Date of earliest event reported): February 27, 2024
Update to November 6, 2023 Nevada Lawsuit
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000023/blackstarmarch2024v2.htm

The risks of continued litigation on this matter are as follows: 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.

For the fiscal year ended December 31, 2023
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000044/begi-20231231.htm

QUICK CAPITAL LLC
Page F-14
On November 23, 2020, the Company entered into a financing agreement with Quick Capital LLC (“Quick Capital”) to borrow $33,275 with a due date of July 16, 2021. The note bears interest at 10%, with a default rate of 24%, and is convertible into shares of the Company’s common stock. The conversion price is to be calculated at 60% of the 2 lowest trading prices of the Company’s common stock for the previous 20 trading days prior to the date of conversion....

Page F-15
During 2023, Quick Capital converted, in two tranches of 4,900,757 and 18,000,000 shares, principal balance of $39,322 and accrued and unpaid interest of $27,225 at conversion prices of $0.000132 to $0.00366 per share under the conversion provision and terms of the note agreement. Upon delivery of the 18,000,000 shares converted under the second conversion, Quick Capital forgave the outstanding principal balance of $68,451.

Page 56
Results of Operations
Legal and professional fees of $326,527 for the year ended December 31, 2023 increased by $199,135 from $127,392 for the year ended December 31, 2022. During 2023 the Company incurred legal fees for litigation and settlement of issues with convertible debt holders which were not incurred in prior years, in addition to recurring costs for SEC regulatory and statutory filings matters. Fees for 2022 were predominately for SEC regulatory and statutory filings, fees for annual audit and quarterly reviews and filings for a Registration Statement on Form S-1 to register underlying common shares for issuance to investors.