BlackStar Enterprise Group Inc (PK) (BEGI) News

A lot of questions and not a lot of answers to shareholders. We are seeing this in spades now - delayed answering brief due to joint extension (why is BEGI signing off on more time when there is federal assertions? More than enough time for settlement, nothing has happened. SH want answers now). Dec 20 .....⏳️ "When you have eliminated the impossible, whatever remains, however improbable, must be the truth."



Also - BEGI is now late with 10Q by quite a stretch and have some interesting 8k filing timing relative to volume.

Hey, if you are right on your liability stuff, I can just write this off on my taxes potentially!

As for you, I don't spend time thinking about what the flip you do with this stock. You have demonstrated that you have an interest in trading cycles and went as so far to get blocked by Fidelity for the purchase volume. I would pay to facilitate a merger between this company and the health company you post about, so we can see morph into a whole new spectacle. Health beds on blockchain or something. 🤣

Flip those blockchain beds.

Don't forget to leave a mint on my pillow.

You have no idea what I do or do not do with this stock. I have consistently demonstrated this stock to be trash. I wouldn't count on CEO Joe to promote this like before. It is my belief that he has already left a trail of liability in the wake of his previous infomercials.

I would also pay attention to the fact that Blackstar has still not reported for Q3. The Continuation Capital agreement is a settlement yet Blackstar’s filings do not reveal any past or ongoing litigation regarding the creditors associated with the accrued liabilities found in the accounts payables to be sold to Continuation Capital, Inc. Is litigation a requirement to demonstrate a “bona fide” debts position to comply with the rules for section 3(a)(10). I'm betting that CEO Joe will go as long as possible and give the new shares time to sell at this level. How bad is it that Blackstar could have qualified the short term liabilities to be sold qualify under the as a "bona fide" debt test. Have to wonder who will be suing Blackstar next.

FORM 8K filed November 5th, 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.

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

Page 108
It can be inferred that while the definition is very broad, the “bona fide” debts required by 3(a)(10), must have caused the sort of financial stress 3(a)(10) was written to relieve. A court may find, in line with the legislative intent, that a claim may not be bona fide if the company would not default but for the 3(a)(10) settlement.

It stretches the bounds of gullibility to believe the financiers in such transactions are not filing the lawsuits for the sole purpose of meeting 3(a)(10)’s requirement that the transaction must be for a “bona fide” claim.

Page 109 -110
The target company agrees before the debt is even assigned to the 3(a)(10) financier. The financier’s “complaint” and the company’s “answer” are then manufactured for the fairness hearing.

At least one court has stated that it is “clear that Section 3(a)(10) does not provide a mechanism for obtaining a fairness hearing. The “authority must come from somewhere” and the court has inherent authority to The financier’s “complaint” and the company’s “answer” are then manufactured for the fairness hearing.

You don't understand the humor at all.

Refer back to the linked evidence.

You think I care to pontificate to dilution dumpers, scoring 'points' on Ihub? 🤣

more humor though. 😆

Double flush.

Wow...You're a genius 😂

First of all, this is what I have been telling you for months now. Playing dilution trading games with this stock and your cycle strategy is VOID, a gigantic waste of time.

Nobody cares what you flippers do. There are probably no flippers to begin with, as you even speculate with your 'painting the tape' assertion.

The only way BEGI moves this paper is if they have tangible news or something external which has been speculated about. Flippers like you buying 1,000,000 shares does nada.

They are still selling those 7s and 8s which would double their money on those share conversions priced at less than $0.0004. It will take forever even at this price to move the more than $860K. For every 1 million shares sold they realize less than $400 in debt relief. Have to also wonder how much of the trading is just painting the tape for the appearance of liquidity. Hard to imagine that many believe they can flip this situation.

Every time I see Goldman in an article, I just think of them pimping out toxic notes in Nevada to OTC companies. At least this board provided entertainment in perpetuity.

Speaking of which, has anyone found registered dealer information or FINRA, SEC, sources that would point to some kind of documentation of identification.

Still waiting.

You're almost funny with the Goldman Sachs comment. Almost...💤

About the case.

--

Have fun talking about Health Beds in Kentucky, Omaha or where ever.

Maybe Goldman Sachs is behind that operation too? 😂

OOOHHHHhhh. Now it is obvious, right. 🤣 What have I been telling people for a year now with the linked evidence. On teh other hand what have you been posting the past few months. 🤔

No shit, Sherlock.

First of all the discussion about the patents viability is pretty much a moot point with regard to shareholder value. Blackstar has agreed to a settlement to convert more than $860K of the short term liabilities priced at a very steep discount to market. It is fair to say in my opinion that those buying this stock at this point are fools.

Four years ago the SEC offered guidance for Blackstar to possible use their trading platform. The narrative in the press releases and filings remains the same ever since. The industry is embracing tokenization for trading all real world assets including equities. Blackstar's methods have nothing to do with tokenization which is likely why to date they can't find anyone interested in hosting the platform. hen you read the details of how the trading platform works you have to wonder why anyone would use it let alone pay for the privilege.

A broker-dealer is not technically an ATS (Alternative Trading System), but an ATS is typically registered as a broker-dealer, meaning that to operate an ATS, a company must register as a broker-dealer and comply with the associated regulations; essentially, an ATS functions as a trading platform operated by a registered broker-dealer.

BlackStar's Digital Trading Platform Concept Receives SEC Guidance in Q3 2020
Wednesday, 16 September 2020 02:00
https://www.accesswire.com/606207/BlackStars-Digital-Trading-Platform-Concept-Receives-SEC-Guidance-in-Q3-2020

We hope that BDTP will be operational, subject to obtaining funding, by 1st Quarter of 2021.

In July 2020, the Company presented the concept to SEC FinHub staff members for regulatory guidance and received the recommendation to apply for Alternative Trading System ("ATS") status.


BlackStar Secures a Family of Patents to Pave the Way for Blockchain Trading of U.S. Securities
Tuesday, 13 August 2024 08:13 AM
https://www.accesswire.com/899983/blackstar-secures-a-family-of-patents-to-pave-the-way-for-blockchain-trading-of-us-securities

BlackStar's trading, funding, and corporate governance technology claimed in these patents covers what BlackStar believes are the essential three elements when applied to the traditional broker-dealer business.

In its filings with the SEC, BlackStar stated that if it could not secure a BD to participate in its digital blockchain platform, it would pursue an application to register as a BD. BlackStar has not yet made the decision as to whether to pursue a BD license.

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

Page 37
...If we are unable at any time to establish the necessary relationship, BDTP™ may never become functional. If we are unable to license BDTP™ to an ATS in this way, we may reevaluate whether we may apply for ATS status.

Significant elements of our intended products and services are based on unpatented trade secrets and know-how that are not publicly disclosed.

Maybe it's time to ring up the estate of John Noble Harris and ask them to pitch in.

He was paid handsomely in consulting fees and it appears never made a single statement?

With what money are they going to start patent trolling? Maybe LaPointe or Joe Kurzodyna will step into the public market and eat some of this dilution with the consulting fees.

In any case, the first step of validating the patents is getting a valuation...

How about using infringers? This stock goes nowhere until a court validates the patents.

That sell off to this level might have given Continuation Capital a nice base from which to convert those shares but with little volume it won't happen any time soon. Have to wonder what their time horizon is for this agreement. More than $860K at the steep discount to market on a rolling basis per tranche is a SHITE load of paper to move. Even CEO Joes infomercials earlier in the year couldn't motivate that kind of liquidity. They need a heavy split and a better story in my opinion. CEO Joe's ongoing narrative trying to ride the coat tails of what is happening with ETFs and tokenized assets on a blockchain isn't working. Companies like Blackrock and the DTCC have boarded the crypto assets on a blockchain train that has left the station. 😆

Bubae
Re: burner67 post# 14772
Sunday, November 10, 2024 9:30:28 PM
Post# 14773 of 14919
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175362317
I di not know what Blackrock was doing with their new system. I pointed out before the statement that CEO Joe made in his last press release. It should be read as two parts both of which are true yet one has nothing to do with the other. This was his attempt to associate the recent SEC decisions regarding crypto assets and ETFs with Blackstar's method for trading the tradition book entry shares on a blockchain. Blackstars method patent has nothing to do with tokens. I found the article below that explains what the industry is doing with regard to trading securities on a blockchain through ETFs. Blackstar could get SEC approval tomorrow with a glowing endorsement and it wouldn't matter. The DTCC is developing a settlement system around tokenization leading the rest of the industry.

Wrong destination. Oh well, someone might find it funny.

A suggestion: Maybe the CEO of Blackstar should change up his promotional strategies. Instead of just talking about the platform and tools that are becoming ever more mysterious as the company drowns under the dark dilution waters, he should pay a production company to demo the platform and the public and private tools in a mock demo environment. Or, he can just have a screen recording of himself doing it --- to show that the platform is at least functional and not just a paper patent. Save the shareholders some money. That would probably do more to help raise capital then jumping on obscure, outdated podcasts and NTS interviews that nobody even watches to begin with, paid for by the public shareholders of the company.

The current dilution does not matter to this CEO though, as he only owns what appears to be 0.52% of the common outstanding shares? (much less probably since the dilution to pay for a lawsuit where he failed to honor a $33k note in time?). To add to that, he seems to have been issued some nicely priced shares at .0004? All the while the company has yet to come to market with any private or public tools that were promoted in the NTS interviews (coming up on a year). Maybe someone can confirm this, as I am tired of sifting through the filings amongst the NT10Q's. Who really knows, right.

He owns the class A shares, so all of this is water under the bridge for him if someone takes a big interest. If not, no skin off his back as he was paid handsomely it seems through consulting fees and issued shares. He took no hit, just losing a lot of time. Shareholders took the hit for him.

Where is the 10Q. This is now ridiculous, in light of all the volume and questions about 8k being filed after shares by CC already having been sold.

Looks like the engineers who designed the platform have some great qualifications. It is becoming apparent that this is just being mismanaged into the ground by a career finance guy. That generation had quite the fun run, but now the past is the past and they have to operate in a new world where darts at walls to make money is all but a figment of past imagination.

The benefit of the doubt is no longer applicable, imo. Any good will has been spent, in spades.

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 priceduring the valuation period..." Market Price is defined as lowest "Sale Price".

This of course can make a difference in the number of shares delivered for conversions. We know for the last 8K that they issued the 60.2 million shares for expenses and fees and likely got those sold before CEO dropped the last 8K sending the price down 50%. It is likely the used the December 3rd sell off to set the base price for the first tranche of shares to be issued. We have the initial sell down at the open on the 3rd then a huge dump around 9:35 of more than 13 million shares taking the price down to $0.0006. Given the language in Exhibit 10.1 this would set a base for conversions at $0.000345. This price will be good for 20 days from that date. They will need huge volume to move more than $860K priced at the discount described so don't expect them to allow much profit taking from players of this stock. I believe that they will soak up whatever liquidity they can and are well positioned with the pricing language to do it. caveat emptor.

Form 8K filed November 5th 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000119/blackstar8k1152024.htm
Page 1
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.

The foregoing is a summary of the terms of the Settlement Agreement and are qualified in their entirety by the Settlement Agreement that is attached hereto and incorporated herein as Exhibit 10.1. The Order Granting Approval of the Settlement Agreement is attached as Exhibit 10.2.

Exhibit 10.1
SETTLEMENT AGREEMENT AND STIPULATION
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001483646/000106594924000119/blackstar8k1152024.htm

Page 2
1. Defined Terms. As used in this Agreement, the following terms shall have the following meanings specified or indicated (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):
...
“SALE PRICE” shall mean the Sale Price of the Common Stock on the Principal Market.
"MARKET PRICE" on any given date shall mean the lowest Sale Price during the Valuation Period.
....
"PURCHASE PRICE" shall mean the Market Price during the Valuation Period (or such other date on which the Purchase Price is calculated in accordance with the terms and conditions of this Agreement) less the product of the Discount and the Market Price.
...
Page 4
a. In settlement of the Claims, Company shall initially issue and deliver to CCI, in one or more tranches as necessary subject to paragraph 3(e) and (f) herein, shares of Common Stock (the “Initial Issuance”), subject to adjustment and ownership limitations as set forth below, sufficient to satisfy the compromised amount at a forty two and one half percent (42.5%) discount to market (the total amount of the claims divided by the purchase price) based on the market price during the valuation period as defined herein through the issuance of freely trading securities issued pursuant to Section 3(a)(10) of the Securities Act (the Settlement.

And what is going on in the mind of the lender (dealer?) GS Capital LLC? Watching BEGI get into another toxicity bed as they watch from afar.

They filed a petty lawsuit over a $33k note, all the while already having made unconscionable levels of gains on convertibles and interest. Now, in response, BEGI has to light their share structure on fire, destroying value in defense of this lawsuit, which should surely draw back regulatory curtains for a peek behind the scenes of what is going on in the world of toxic lending in Nevada.

No assertions on my end, just going by the federal assertions of the opening brief prepared by lawyers.

Shame people are catching colds and not able to file answering briefs on time for a slam dunk of a contract law case.

Hopefully BEGI can fight longer and not bend over.

Answering brief should provide answers, not obfuscation and absconding through potential settlement.

But if no settlement... BEGI fights to the end and destroys itself in the process if they don't 'win'? What then of the shares, the lawyer fees, etc, etc for GS capital, LLC. Bankruptcy? Better hope those patents are worth something. And what of the remaining shareholders of BEGI. Hungry, too, although I guess there are barely any left.

🤡 Clown show, all around 😂

Dec. 20 cant come soon enough!

True.

But hopefully the debt clearing will allow BEGI to one day raise some money for patent valuation which is costly.

A lot of volume lately... we can only guess it is coming from CC unloading freely issued shares at a nice discount.

It seems they are not an 'investor', provided they are going to just turn around and dump shares on retail (if this is them dumping). Bears may have the right to claw at this. Blackstar secures another form of a toxic lender, not institutional investor... so it seems.

10Q...Answering Brief Dec. 20... no transparency as of yet. But at least CC is transparently not a registered dealer. GS Cap LLC still in question.

Shareholders get pointy end of the stick for now. Hopefully BEGI patents are worth something to rectify all of this disregard.

Shame.

I not sure CC cares much about the valuation of the patents. They got really cheap shares that they can turn into a profit.

I'm curious as to why you believe Continuation Capital has any interest in the valuation of the patents. They are simply buying tranches of the accumulated accounts payables at a steep discount to market and dumping them on the traders of this stock. They are even getting extra shares per transaction to the tune of 60.2 million shares for fees and expenses. They are investing zero capital and assuming very little risk. The patents have attracted zero investment to date which speaks to their value in my opinion. Where is the quarterly filing? We know they are doing zero business with zero revenue so what are they hiding?

...I’m curious to find out the valuation of their patents that Continuation Capital will do.


Bubae
Re: None
Thursday, November 28, 2024 7:26:55 PM
Post# 14893 of 14912
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175453765&txt2find=expenses
At least CEO Joe filed an 8K for the massive dilution to come. I understand from my reading that he didn't have to but maybe he is covering his hind end. According to the paper linked below "silence to the market about the deal is key to a 3(a)(10) financier" If the cat is out of the bag on this one I guess the buying may dry up despite renewed efforts by the CEO with his infomercials making the dilutive effect of the steep discounts with each tranche even worse.

Same. I only spend "play" money with these stocks. I basically consider the money spent. If it turns a profit someday, great. If not, oh well. It was fun while it lasted. I'm hear until it's belly up, or I can retire. Currently retirement not looking so good! Lol

Tough day, no doubt. I’m going to continue to be patient. Let’s see what the outcome of the Nevada court case will be, the court filing says they are working on a settlement with GS Capital, which is good. But more importantly, I’m curious to find out the valuation of their patents that Continuation Capital will do.

Get out now and don't turn back. This thing is headed for BK.

The rest of the story. 😆



4 Trillion Reasons BlackRock Changed Its Mind On Digital Assets
https://www.forbes.com/sites/digital-assets/2024/09/17/4-trillion-reasons-blackrock-changed-its-mind-on-digital-assets/

The financial opportunity for tokenization is out of this world; earlier this year, a report from McKinsey predicted the tokenized real world asset (RWA) sector will reach nearly $4 trillion by the end of the decade.

That’s a lot of good reasons to bet on the future of finance being tokenized, yet it only goes part of the way to explain BlackRock’s (along with many other major institutions, from Deutsche to JP Morgan) fervent adoption of digital and tokenized assets. The truth is, tokenization changes everything.

That said, the direction of travel is becoming ever more clear, especially with the emergence of new frameworks like the European Union’s Markets in Crypto-Assets Regulation (MiCA). These provide both much-needed clarity and guidance for those pioneering the tokenized future, as well as a model for still-skeptical regulators like the SEC.


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

Page 6
References throughout this registration statement to “digital shares” and similar terms refers to the typical way securities are held and traded and is the same as DTCC eligible book entry securities. We are not attempting to “tokenize” securities,

Page 17
It will remain in the testing phase until we license the BDTP™ platform to a broker-dealer, clearing firm, and/or ATS. The BDTP™ platform is not designed to support transactions in any tokens, faux currencies, coins, crypto or any crypto related assets...

Page 18
Our BlackStar Electronic Fungible Shares (BEFS) are proposed to be the initially traded securities on the blockchain on the BDTP™ platform...

The BEFS are not “tokens” or “crypto tokens”. A “token” is generally understood to be a unit of value that blockchain-based organizations or projects develop on top of existing blockchain networks....

Page 19
We are not seeking to create “tokens,” but rather to have a system which allows the trading of well recognized corporate shares established under state law.

The BDTP™ platform is not currently operational for any securities and any such securities must first be registered with the SEC under the Securities Act or have an available exemption from registration...
Page 20

Are the BEFS crypto assets or tokens?
The proposed BDTP™ is designed to trade existing shares of common stock (in an electronic form) and NOT crypto assets, cryptocurrency, or tokens. We are not attempting to “tokenize” securities,...

Page 38
The Company does not operate in the crypto asset markets, does not have crypto asset holdings, and is not proposing to participate in the crypto asset industry, including crypto securities, crypto currencies, and tokens. The use of a blockchain in our proposed platform often gets conflated with crypto asset markets due to blockchain’s use in those industries as well.

I see this as bottomless dilution but I guess that depends on if you think Blackstar has a marketable product. I for one do not. Tokenization of all real world assets on a blockchain is attracting heavy investment and the financial markets biggest players. Blackstar is attracting no institutional investors and is struggling to con OTC traders into buying the debt. I see no reason for any broker / dealer to partner with Blackstar to use their platform if it ever becomes approved for use.

What Is Tokenization? Trading ETFs on a Blockchain
https://www.etf.com/sections/etf-basics/what-tokenization-trading-etfs-blockchain

Most recently, BlackRock, Inc., the world’s largest asset manager whose CEO Larry Fink once called cryptocurrency “an index of money laundering,” announced the creation of its BlackRock USD Institutional Liquidity Fund (BUIDL), which will "tokenize" physical assets, with those tokens recorded on the Ethereum blockchain.

BlackRock’s new product may foreshadow a larger shift in how major companies issue and trade ETFs. Because of its size—more than $10 trillion in assets under management—BlackRock’s carries enormous influence over the financial services industry. Its application for a spot bitcoin ETF last year served as a turning point for those products' approval.

Ethereum Is Making Big Moves. 3 Reasons I'm Buying It Hand Over Fist in June.
June 09, 2024
https://www.nasdaq.com/articles/ethereum-making-big-moves-3-reasons-im-buying-it-hand-over-fist-june

Another reason to be bullish on Ethereum is its potential for the tokenization of real-world assets (RWA). Tokenization involves converting physical and intangible assets into digital tokens on a blockchain, making them easier to transfer, trade, and manage. This can include anything from real estate and art to stocks and bonds.

In fact, we are already seeing the beginnings of this movement. For instance, in May, BlackRock (the world's largest asset manager) launched a tokenized fund on Ethereum, marking a significant step toward the convergence of blockchain technology and traditional financial instruments.

Highlighting the transformative potential of blockchain technology, BlackRock CEO Larry Fink recently stated that tokenization will be "the next generation for markets." And rest assured, Ethereum will be the blockchain of choice for this revolution.

One of the most compelling reasons to invest in Ethereum right now is the anticipated approval of a spot Ethereum ETF by the Securities and Exchange Commission (SEC).

Bubae
Re: None
Wednesday, November 06, 2024 7:19:32 PM
Post# 14698 of 14907
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175344480
The proposed BDTP™ is designed to trade existing shares of common stock (in an electronic form) and NOT crypto assets, cryptocurrency, or tokens. We are not attempting to “tokenize” securities,...

The Company does not operate in the crypto asset markets, does not have crypto asset holdings, and is not proposing to participate in the crypto asset industry, including crypto securities, crypto currencies, and tokens. The use of a blockchain in our proposed platform often gets conflated with crypto asset markets due to blockchain’s use in those industries as well.

Where is the bottom here?

Rip with more than $860K of dilution at a steep discount to market on the way. 😆 They now have a closing price of $0.0007 for a conversion base price of $0.0004 for the first tranche. Rip against that tide coupled with the hopeful flippers who picked up shares today. CEO Joe better have some pent up news for you all but you can bet they will be moving shares in volume.

Maybe dip and dip some more

Today, tomorrow news brewing here? Dip and rip here?

100%

What those loading up on 8s now don't understand is that the real dilution hasn't even started yet. The 60.2 million shares that have been issued is for fees and expenses and was likely issued right after the outstanding share count update of November 15th. Now they need a 20 day closing low price to set the first tranche of shares to be issued. You can bet that this filing was delayed until the initial tranche for fees and expenses was sold. That is where it gets tricky for the investor buying the payables. If it closes at 8 today can they make money selling a tranche of shares priced at $0.00046. CEO Joe will need to get back on the road with those infomercials and the bogus patent narrative. 😆 To add to the future headwinds are those who thought today was a good basis for a flip. 🤔

You mean the Marc that was a major shareholder and was supposed to keep Begi from the teens? That guy is one of the worst pumpers I have ever seen

No time, marc is busy buying up those 8s and 9s thinking he hit the lottery. 🤣 CEO Joe will be unloading more than $860K in what is mostly legal expenses in the accounts payable at a steep discount to market with each tranche issuing up to 4.99% of the OS. This dilution doesn't address the notes that are currently in default or and those that are past their maturity dates. No possible way will he be able to move more than $1 million in new paper without splitting and burning it down again in my opinion. Volume is what they need because they get price with the discount to market language. Even at $0.0001 they can make money on those shares priced at 42.5% discount to market.

So the SEC recently, last couple of years, has been going after lenders acting as unregistered dealers who dump toxic unregistered share conversions into the market. Yet this Section 3(a)(10)exemption from registration is allowed to do the same thing? Why would a company ever register a proper offering if all they have to do is run up debt in the form of payables, have creditors file a suit in court, Judge shop to find a Judge to sign off on it... then voila!, they have shares that are immediately tradable when issued to be dumped on OTC traders. Crazy shite. These shysters always find new ways to fleece traders of the OTC.



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
...from certain vendors of the Company, which consist of accounts payable due from the Company.

Form 8K November 5th 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.

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, August 22, 2024 9:01:46 AM
Post# 14263 of 14307
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174965606&txt2find=payables
Blackstar is still borrowing from the so called friends and associates in Q2 but not enough to cover that cash burn. The balance sheet on page page 3 of the Q2 filing reveals a $874,101 accounts payable as of June 30th versus $358,001 as of December 31st 2023. I went back to the Q3 2023 filing and found that the accounts payable number was only $167,000.

Hopefully you go this form ChatGPT because some of the assumptions are nothing but wishful thinking

Hopefully we'll get a visit from Savannah Marc today with some of his wisdom

DIE Lution

This stock is about to get crushed but you all were told so with the release of the November 5th 8K. New filing out to increase the authorized share count from 2 billion to 6 billion shares. In this filing we find that the outstanding share count has increased by 60,,200,000 as of November 26th which is a initial tranche of shares issued to Continuation Capital for fees. CEO Joe still hasn't filed the quarterly. There must be some more good news there, right? 😉


PRE 14-C December 3rd, 2024
https://www.otcmarkets.com/filing/html?id=18020202&guid=rVY-kFe7wowInhh

Proposal 1: To authorize an amendment to the Company’s Articles of Incorporation to increase the Company’s authorized capital to 6,010,000,000 shares comprising 6,000,000,000 shares of Common Stock par value $.001 per share and 10,000,000 shares of Preferred Stock par value $0.001 per share. (This action requires an amendment to the Certificate of Incorporation).

Due to the current number of issued and outstanding shares of common stock as of November 26, 2024 (1,854,894,873) compared to the authorized of 2,000,000,000 common shares, and with the need to provide shares of common stock upon conversion of several outstanding convertible promissory notes and debt conversions, the Company is poorly positioned under its current number of authorized shares and market share price.

VOTES FOR THE PROPOSAL
Joseph Kurczodyna, CEO and Director and a shareholder in our Company, beneficially owns approximately 0.49% of our common stock (not including the Class A Super Majority Voting Preferred stock conversion rights) and full voting control of 100% of our Class A Super Majority Voting Preferred stock




Bubae
Re: None
Thursday, November 28, 2024 7:26:55 PM
Post#14893 of 14896
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175453765&txt2find=fees%2Bexpenses
At least CEO Joe filed an 8K for the massive dilution to come. I understand from my reading that he didn't have to but maybe he is covering his hind end. According to the paper linked below "silence to the market about the deal is key to a 3(a)(10) financier" If the cat is out of the bag on this one I guess the buying may dry up despite renewed efforts by the CEO with his infomercials making the dilutive effect of the steep discounts with each tranche even worse.

The value of a patent depends on several factors, including its uniqueness, market potential, industry demand, and the legal strength of the patent itself. Here’s a breakdown of potential factors that could influence the value of the two types of patents you mentioned:

1. Stock Trading on Blockchain Patent

• Market Size: Blockchain-based stock trading platforms could revolutionize traditional markets by offering decentralized, transparent, and efficient trading.
• Demand: High interest from financial institutions, fintech startups, and exchanges.
• Technology Differentiation: If the patent introduces a novel method of secure, efficient, or cost-effective trading, it could be highly valuable.
• Value Estimate: Depending on the specifics, such patents could range from $500,000 to $10 million or more, especially if it shows potential for large-scale adoption by financial markets.

2. Corporate Governance on Blockchain Patent

• Market Size: Blockchain applications in corporate governance, like shareholder voting, audit trails, and smart contracts, are gaining traction, particularly in public and large private companies.
• Demand: High interest from corporations, legal tech firms, and compliance agencies.
• Value Estimate: Given the growing need for transparency and automation in governance, the patent could be worth $250,000 to $5 million or more, depending on its ability to streamline governance processes and reduce costs.

Factors Affecting Overall Value:

• Licensing Potential: Patents can generate recurring income if licensed to multiple firms.
• Market Trends: Blockchain adoption trends, regulatory environment, and integration with existing systems.
• Patent Protection Strength: Broader, well-protected patents tend to be more valuable.

There may e a hang up with CEO Joe's quest to convert the accounts payables of more than $860K using the Section 3(a)(10) exemption. Why would Blackstar be seeking a valuation of its assets when they are cash strapped and this exercise would require professional services. Lawsuit settlement? Maybe to ensure that they are not in conflict with the Section 3(a)(10) exemption rules? It gets complicated but possibly Blackstar needs to meet the 40% test to be exempt from registering the shares to show that they are not in the business of simply selling shares. Lets face it, Blackstar has zero full time employees and zero revenue. All they have is the method patents who's market value if ever allowed to be used is questionable.


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
Mr. Kurczodyna also stated that the next step for the Company is a valuation of our patents and a licensing strategy.

VOL. 31, NO. 6 • JUNE 2024
An Alternative Retail Offering:
“Conglomerate Vehicles” and
Their Regulatory Considerations
By Michael G. Doherty, Chelsea M. Childs, and Andrew G. Lawson
https://www.ropesgray.com/-/media/files/articles/2024/06/202406_investment_lawyer_article.pdf?rev=bbe8668bf561476db0d79307d6626bc8&hash=C1D5A6CB2D2D3E71592874054C398383
Section 3(a)(1)(C) applies its 40 percent test to investment in “investment securities.” For these purposes, “investment securities” are all securities excluding government securities, interests in employees’ securities companies and securities issued by majority-owned subsidiaries of the owner that (1) are not investment companies, and (2) are not relying on the exception from the definition of investment company in Sections 3(c)(1) or 3(c)(7). The SEC considers investment in the securities of a majority-owned subsidiary as being “more akin to activities of a holding company than an investment company.”...

At least CEO Joe filed an 8K for the massive dilution to come. I understand from my reading that he didn't have to but maybe he is covering his hind end. According to the paper linked below "silence to the market about the deal is key to a 3(a)(10) financier" If the cat is out of the bag on this one I guess the buying may dry up despite renewed efforts by the CEO with his infomercials making the dilutive effect of the steep discounts with each tranche even worse.

This is a toxic note for certain including tranches of 60,200,000 shares for fees and expenses for the number of transactions which isn't clear from the reading of the filing. $861,539.26 worth of shares priced at a steep discount to market is crazy stuff. This is what CEO Joe referred to as an institutional investment in the November 5th press release. Good news right? 😆 The question is when do they start hammering this with the new shares.



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


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.


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

Page 105
In a basic 3(a)(10) arrangement, a 3(a)(10) financier brings a lawsuit against the company that will be receiving the financing. Within the initial lawsuit documents, it is stipulated that the 3(a)(10) financier is to be issued unrestricted common stock pursuant to a reduction in price from the current market value.42 According to the SEC filings of several companies, millions,43 and sometimes billions,44 of shares are issued to the financier in “tranches” which can be requested at any time by the financier as long as the issuance is below either 4.99%45 or 9.99%....

Page 106
Unless the company files an 8-K or other document with the SEC, the investor will likely never know the 3(a)(10) settlement happened until after the transaction is completed. Issuers may intentionally withhold information from shareholders in order to keep the stock price from falling.52 Shareholders who are notified may sell out of their position, not because the company lacks investment potential, but because of the overwhelming number of shares which will be sold and the pressure on the company to create artificial fixes (like a reverse split), which can “renew selling pressure.”

Page 107
Bearing in mind that a rational investor would not purchase stock certain to fall in price, and considering that a company’s stock price is very likely to fall because of the dilutive nature of 3(a)(10) financing, silence to the market about the deal is key to a 3(a)(10) financier. If the market knew that the purchase of a certain company’s stock would trigger the issuance of more shares, thus driving down the price, it is unlikely potential investors would make purchase. Silence about a 3(a)(10) financing agreement allows a 3(a)(10) financier to sell the stock where otherwise there would be no buyer for their discounted shares.

As you all know, I don't follow the court case. Too many details and not enough time. But what I would like to know is what is the absolute worse case scenario for Blackstar, especially in terms of money or shares out of pocket?

CEO Joe always paints a pretty picture. All CEOs of start ups do the same. What other choice do they have? The question is, do you believe it?

The value of a patent depends on several factors, including its uniqueness, market potential, industry demand, and the legal strength of the patent itself. Here’s a breakdown of potential factors that could influence the value of the two types of patents you mentioned:

1. Stock Trading on Blockchain Patent

• Market Size: Blockchain-based stock trading platforms could revolutionize traditional markets by offering decentralized, transparent, and efficient trading.
• Demand: High interest from financial institutions, fintech startups, and exchanges.
• Technology Differentiation: If the patent introduces a novel method of secure, efficient, or cost-effective trading, it could be highly valuable.
• Value Estimate: Depending on the specifics, such patents could range from $500,000 to $10 million or more, especially if it shows potential for large-scale adoption by financial markets.

2. Corporate Governance on Blockchain Patent

• Market Size: Blockchain applications in corporate governance, like shareholder voting, audit trails, and smart contracts, are gaining traction, particularly in public and large private companies.
• Demand: High interest from corporations, legal tech firms, and compliance agencies.
• Value Estimate: Given the growing need for transparency and automation in governance, the patent could be worth $250,000 to $5 million or more, depending on its ability to streamline governance processes and reduce costs.

Factors Affecting Overall Value:

• Licensing Potential: Patents can generate recurring income if licensed to multiple firms.
• Market Trends: Blockchain adoption trends, regulatory environment, and integration with existing systems.
• Patent Protection Strength: Broader, well-protected patents tend to be more valuable.

Would you like more detailed examples of comparable patents or valuation methods?

You guys are going to have to do way better than quote a line from the company's website. You are being lazy. 😆How much does a promotional post pay these days?

BlackStar's technology invites the industry, exchanges, and dealers to trade U.S. registered common stock on the blockchain. $BEGI

$BEGI BlackStar CEO Joseph E. Kurczodyna believes the priority of millions of investors is to trade digital assets and crypto on the blockchain. BlackStar's goal is to facilitate the trading of all registered public companies on the blockchain as cash spot markets without shorting.

$BEGI More information on Blackstar can be found in the Company's filings at the SEC web site: https://www.sec.gov/cgi-bin/browse-edgar?company=BlackStar&20Enterprise&match=&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany.