BlackStar Enterprise Group Inc (BEGI)

[Bubae]

New outstanding share count update. No change. I'm beginning to think CEO Joe will not be able to pull off that section 3(a)(10) dilution. Either way it is bad news for shareholders. The account payable that were to be converted is mostly legal fees. Attorneys normally like getting paid. That account was more than $1 million at the end of Q3. Screen shot of the December 13th update which was posted on the 26th below.

Blockchain Technology Company BlackStar Secures Institutional Investor for Debt Repayment, Seeks Valuation and Eyes Revenue Possibilities Through IP Licensing
Tuesday, 05 November 2024 09:45 AM
https://www.accesswire.com/939223/blockchain-technology-company-blackstar-secures-institutional-investor-for-debt-repayment-seeks-valuation-and-eyes-revenue-possibilities-through-ip-licensing

BlackStar entered into an agreement to retire $861,539.26 of debt ("the Settlement Amount") in a transaction pursuant to 3(a)(10) of the Securities Act. Continuation Capital, Inc. ("CCI"), a Delaware corporation, purchased the obligations from certain vendors of the Company, which consist of accounts payable due from the Company.

Form 8K November 05, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000119/blackstar8k1152024.htm

On October 29, 2024, BlackStar Enterprise Group, Inc. ("BEGI", "BlackStar", or the "Company") entered into a proposed settlement for purchase of $861,539.26 of debt owed to BlackStar's creditors. Under the terms of the Settlement Agreement and Stipulation ("Settlement Agreement") discussed below, Continuation Capital, Inc. ("CCI") agreed to purchase the bona fide and outstanding and unpaid creditor claims in exchange for shares of BlackStar's common stock in a State court approved transaction in compliance with the terms of Section 3(a)(10) of the Securities Act of 1933, as amended.

The Settlement Agreement allows Continuation Capital to purchase debt that we owe to our creditors through direct purchase of the debts from our creditors and convert such debt into shares of our common stock at a reduction of forty-two and a half percent (42.5%) off the lowest closing sale price for twenty (20) trading days as disclosed in the Settlement Agreement prior to the date of conversion for each tranche of debt purchased. Upon closing, the Company will immediately issue 60,200,000 freely trading shares pursuant to Section 3(a)(10) of the Securities Act to CCI.

Bubae
Re: None
Thursday, December 05, 2024 9:31:53 AM
Post# 14917 of 14975
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175480484
For those who may believe buying 7s and 8s here is an opportunity to flip this trash. The summary of the settlement agreement states that the conversions will be done "...at a reduction of forty-two and a half percent (42.5%) off the lowest closing sale price for twenty (20) trading days as disclosed in the Settlement Agreement..." Looking at the Settlement Agreement, Exhibit 10.1 linked below, we find that the conversions are to be done at "..market price during the valuation period..." Market Price is defined as lowest "Sale Price".

3(A)(10) Financing: New Predatory Financing Using the Securities Act
Thomas S. Glassman University of Michigan Law School
https://repository.law.umich.edu/cgi/viewcontent.cgi?article=1039&context=mbelr