BlackStar Enterprise Group Inc (BEGI)

[Bubae]

We have detailed information for the two convertible notes for Adar Alef and SE Holdings in the annual. It would appear that these notes are in default earning the 24% interest and was the case in the 2022 annual filing as well. There had been some abatement payments made in 2022 on the defaulted notes but all we know for certain at this point is that there $584,079 of principle left through April 15th with no related comments in the subsequent events section of the annual.
Also listed in the annual is a conversion

Something else we know from the annual is that Adar Alef converted $13,455 principal into 62,100,00 shares in November 2023. There is no mention of this in the Q3 2023 even in the subsequent events section which updates to the filing date of November 20th. The closing price on the 20th of November was $0.0098. Get some idea where the trading losses went during that period?

Converting that 62 million shares at a penny would be $620,000 with Blackstar getting $13,455 in debt relief. Watch the share burn continue for the next couple of weeks this time with conversions at $0.00065. That $0.00065 price is for Adar Alef with a 50% discount to the average 20 day closing bid price. SE Holdings on the other hand can calculate theirs based on 50% discount to the average 20 day trading price

Keep in mind that these lenders are already making good money on these notes at 24% default interest. Now that principle and interest is being converted at a deep discount to market.


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

SE HOLDINGS LLC Current principle balance $220,000

On January 26, 2021, the Company entered into a financing agreement with SE Holdings LLC to borrow $220,000. The note bears interest at 10%, with a default rate of 24%, and is convertible, at any time after the date of issuance. The conversion price is to be calculated at 50% of the average of the three lowest trading price of the Company’s common stock for the previous twenty trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock. Interest expense recorded for 2023 is $496,157.

The Company has recorded interest on the note at the default rate of 24% from the maturity date of the note through December 31, 2023.

On April 27, 2022, the Company entered into an Amendment and Abatement Agreement (“Abatement Agreement”) with SE Holdings and Adar Alef (collectively “the Parties”) to address the Company’s default on the two outstanding convertible notes between the Parties, consisting of the remaining $473,500 principal balance to Adar Alef and face amount $220,000 note with SE Holdings.


ADAR ALEF, LLC Current principle balance $364,079

On April 29, 2021, the Company entered into a financing agreement with Adar Alef, LLC (“Adar Alef”) to borrow $550,000. The note matured on April 29, 2022. bears interest at 10%, with a default rate of 24%, and is convertible at the option of the holder, at any time after the date of issuance. The conversion price is to be calculated at 50% of the average of the three lowest closing bid prices of the Company’s common stock for the previous 20 trading days prior to the date of conversion. The lender agrees to limit the amount of stock received to less than 4.99% of the total outstanding common stock.

In November 2023, Adar Alef issued a notice of conversion for a partial conversion of $13,455 principal into 62,100,00 shares of the Company’s common stock at a price of $0.0002167 per share under the conversion provision and terms of the note agreement.