I'm thinking that there may be zero shares available at the moment. That is based on no share count increased from October to December 21st when the first tranche of 62,084,333 GS Capital shares was issued per the preliminary injunction ordered by the court. This would also be based on the restraining order that GS Capital was able to get back in November preventing Blackstar from trading any shares.
According to the lawsuit update 8K we are looking at 257,000,000 shares ordered to cover the $33,682. We see a updated OTC outstanding share count dated January 5th 300,124,013 shares added. Restricted increased by 153,350,000 so what was added for current trading was about 146,774,013. Outstanding share count increase dated February 2nd for an additional 62,027,333 shares. This number closely matches the second tranche of shares listed in the lawsuit update 8K of 62,023,333 shares. Outstanding share count increase dated March 1st for an additional 65,168,333 shares. This number exactly matches the third tranche number in the 8K. The last tranche directed by the preliminary injunction to come is for 68,425,500. So the 180 day holding period shows that the December tranche of lawsuit shares should be vested around the end of June. But the January 5th update was for a total of 300,124,013 shares, so they all could be eligible around then.
Meanwhile, the preliminary injunction ordered the Company to honor the conversion requests of November 2, 2023 (for the conversion of 62,084,333 shares of common stock – completed December 21, 2023) and the three subsequent requests GS Capital claimed it “would have” made (62,023,333 shares, 65,168,333 shares, and 68,425,500 shares)....
As of November 1, 2023, there were 1,244,572,435 shares of the registrant’s common stock, $0.001 par value, issued and outstanding, not including shares reserved for conversion of notes.
So with the dilution potential guess work out of the way is there any potential that this could chew its way through the 2s? Huge dilution dumps from the 6s down to the 2s and I suspect most who remain have averages in that range. These people see the dilution that will become available at the end of June and that is the tip of the iceberg.
We have a court docket update showing a court date of March 25th for what they are calling a "Mandatory Rule 16 Conference", From what I read it appears to be a pretrial conference or possibly a settlement? So this lawsuit is likely costing Blackstar a small fortune, cash they certainly don't have. They could also be on the hook for GS Capitals legal expenses to go along with the interest and penalties due on the now defaulted note.
We should get the annual filing the first week of April after the late notice which should reveal that the S-1 offering is still intact and the dilution that they had queued up for this promotional period was all stopped by the lawsuit restraining order. The company has zero revenue so I'm not sure what potential catalyst could be in the offing. At this point if I were to pick an entry I would have no expectation of flipping beyond 2. Bad news from the lawsuit could tip this into trips. As it is, Blackstar may need to increase the authorized share count if they intent to honor the share reserve requirements for the debt they still hold.
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.
case number is A-23-881099-B, plug it into the court search query linked below.
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