BlackStar Enterprise Group Inc (BEGI)

[Bubae]

I know that you all do not enjoy the drama of this stock as much as I do but the documents on the Nevada Supreme Court site regarding this stock are a fun read. It really is as ridiculous as it seems that Blackstar would expose themselves to this stupid, stupid, stupid lawsuit and the expense over a principle amount of only $33,682. Especially in light of the shares they have set on fire in other matters.

Blackstar's concern about share price depreciation expressed in Page 2 of document 24-05052 helps to explain why Blackstar has entered into a $100K media consulting contract for which they are issuing shares. The irony is that while Blackstar is desperately trying to preserve price level they are also ensuring that GS Capital maximizes its return on those shares.

There are two interesting comments in document 24-03599 regarding "...Blackstar’s imminent insolvency..." The basis for this opinion is not mentioned so take it for what it is based on the context what else you read in the correspondence. These guys are pissed off it would seem. 😆

As stated in document 24-05052 the availability of shares from GS Capital would begin after February 15th expiration of the stay. Has GS Capital sold those shares in the past eight weeks or so you think? 🤔 They did very well with the March 22nd infomercial and 119 million shares traded but the April 10 infomercial fell flat generating only 3.4 million in volume for the day. Keep in mind that this is only for the principle amount that was outstanding. Will the damages be paid in shares as well? Even more reason for GS Capital to work closely with Blackstar to maintain price level.

Hey, think maybe Blackstar will think twice about not handing over shares for the two relatively larger convertible notes in the S-1 offering that are eligible to convert at 50% discount to market? Those matured two years ago.



https://caseinfo.nvsupremecourt.us/public/caseView.do;jsessionid=3856EC6FBAE306463832E195DC457FC7?csIID=68335


Sentence at the bottom of page 8, document number 24-03599

Even if Blackstar had not previously consented to this remedy, specific performance was appropriate here, given Blackstar’s imminent insolvency and the extreme volatility of its shares.

Bottom of page 9 and page 10, document number 24-03599

On the other hand, GS Capital has suffered and will continue to suffer substantial,
irreparable harm if a stay is granted. Blackstar is currently on the brink of insolvency.
See Blackstar’s 10-Q, Exhibit “11” to Sayegh Decl. Due to its precarious financial
position, its stock price is extremely volatile. In fact, in the short time since the Order
was entered, Blackstar’s stock has fallen approximately 72%, resulting in
significant, irreparable damages to GS Capital during the district court’s stay.
Further, Blackstar’s stock price has historically been much lower than the November
2023 price surge, and the recent precipitous decline indicates a clear reversion to the
historical mean, which would represent an additional 80% drop from current levels.
A stay from this Court would only serve to compound the irreparable harm that has
already occurred as the value of Blackstar’s stock becomes more tenuous with each
day a stay is in place.


Page 2 of 24-04955

Third, Blackstar alleges that GS Capital does not ‘care’ about Blackstar’s decline
in value. Again, this is also incorrect and directly contradicted by GS Capital’s
interest in maximizing the value of Blackstar’ stock. Blackstar’s decline in stock
price would degrade the value of the Blackstar shares that GS Capital receives
through conversions

Page 2 of document 24-05052

Because GS Capital has confirmed that it fully intends to sell the disputed
shares as soon as the district court stay expires on February 15, 2023, there is good
cause for this Court to rule on the pending Motion for Stay Pending Appeal on or
before February 14, 2024.


ORDER DENYING STAY - document 24-05565
Bottom of page 2

("When a contract is clear on its
face, it will be construed from the written language and enforced as
written." (internal quote marks omitted)); and appellant has not
demonstrated a likelihood of success on the merits sufficient to tip the
balance of the NRAP 8(c) factors in favor of a stay. Accordingly, we deny
appellant's motions.



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

During the year ended December 31, 2023, the Company issued shares of its common stock as follows:

• 845,162,311 shares for conversion of $200,432 principal and interest on convertible note payable.
  
  
• 71,250,000 shares valued at $266,063 as consideration for financing fees for loans made to the Company.
  
  
• 25,000,000 shares valued at $100,000 ($0.004 per share) as partial consideration for a media consulting contract.
  
  
• 56,788,923 shares for exercise of previously issued warrants at $0.0128 per share. The exercise price was revised to $0.00062 per share from $0.25 per share as per antidilution provision of the warrant agreement. The warrants were exercised on a cashless or “net” basis....