Replies to post #8318 on BlackStar Enterprise Group Inc (BEGI)

[Savannah-Marc]

He would go so far as to lay siege to the novelty stores with all the pumps they sell! LOL

[Bubae]

Sure I see sarcasm when I see it.🙄 I believe the SEC has better tools than before to expose these situations. This one may be of particular interest because of the obscene potential profit of one toxic lender who was issued just shy of 600 million of the 698 million shares issue at an average price of $0.00017.

The company started 2023 with only 546,495,214 shares outstanding with the bulk of the balance of debt conversions issued coming in Q2 2023. Couple that with a promotional campaign and we can anticipate large retail losses here. Add in the promotional activity and these guys may be worthy of some special attention. Did this lender observe holding rules for unregistered shares or did they act as unregistered dealers.

Bubae
Re: None
Saturday, December 23, 2023 10:12:19 AM
Post# 7962 of 8321
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173492266&txt2find=Diagonal%2BLending

When we add those three groups up we find that 454,279,436 shares will become eligible on a rolling basis in tranches per the issuance schedule.

Press Release
SEC Awards More Than $28 Million to Seven Whistleblowers
FOR IMMEDIATE RELEASE
2023-257
Washington D.C., Dec. 22, 2023
https://www.sec.gov/news/press-release/2023-257

"These whistleblowers provided valuable information and substantial assistance that played a critical role in the SEC returning millions of dollars to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.

What Toxic Financing Is And How Public Companies Can Avoid It
PUBLISHED
MAR 16, 2023 10:31AM EDT
https://www.nasdaq.com/articles/what-toxic-financing-is-and-how-public-companies-can-avoid-it

Additionally, convertible note issuers with a track record of driving toxic financing deals generally limit the holding period on their notes to six months for SEC-reporting companies. The Securities Act of 1933 requires all unregistered securities acquired directly from the issuer to be held for at least six months, which is why a six-month timeframe is often given as the holding period on toxic debt.

Press Release
Stock Issuers & SEC Taking the Fight to ‘Toxic’ Lenders
by Howard Mulligan August 15, 2023 in Financial Services
Agency bringing actions against convertible noteholders for failing to register as dealers
https://www.corporatecomplianceinsights.com/sec-toxic-lenders/#:~:text=Since%20early%202020%2C%20the%20SEC,required%20by%20the%20Securities%20and

In March 2022, a Florida district court dealt with a defendant that purchased convertible notes of over 100 microcap issuers, converted the notes into shares of stock at massive discounts and then dumped over 17.5 billion shares into the public market, generating over $21.5 million in profits.
In August 2022, the SEC initiated an action for failure to register and then entered into a settlement with a noteholder that, from 2016-2020, purchased approximately 250 convertible notes and profitability sold the converted shares. In the settlement, the defendants agreed to (1) pay disgorgement and prejudgment interest of $8,390,601.27, (2) the entry of a civil penalty of $810,307 and (3) a five-year suspension from acting as a penny-stock dealers.