BlackStar Enterprise Group clarifies a news article dated August 1, 2022, by BizWest Media with the following release
BlackStar Enterprise Group, Inc. (OTC Pinks: BEGI) has amended its registration statement with the SEC to register 46 million shares of common stock, aimed at paying debt. The shares, underlying convertible notes, are for resale by noteholders and not publicly offered. CFO Joseph E. Kurczodyna noted delays in registration effectiveness due to the complexity of their blockchain-based trading platform. The platform aims to enhance transparency for OTC-traded stocks. The SEC is still reviewing the registration, which has not yet been deemed effective.
- Potential for increased transparency in OTC Markets through blockchain technology.
- Development of an innovative trading platform that may attract public companies.
- Delays in registration effectiveness could hinder financing and operations.
- The registration statement is still under review, posing uncertainty.
BOULDER, Colo., Aug. 8, 2022 /PRNewswire/ -- BlackStar Enterprise Group, Inc. (OTC Pinks: BEGI) (the "Company" or "BlackStar") amended its registration statement on Monday, August 1, 2022, with the U.S. Securities and Exchange Commission. BlackStar intends to pay debt by registering 46 million shares of common stock at a price to be determined. The shares being registered are those underlying convertible notes and are being registered for resale by the listed noteholders; they are not being offered for sale to the public, as was indicated in the news article published by BizWest Media and Colorado Daily on August 1, 2022. BlackStar was not contacted by the news outlet for review or input at any point and has no connection, financial or otherwise, to the article's author, the publications, or the media companies.
Joseph E. Kurczodyna, BlackStar's CFO, said "BlackStar filed the registration in July 2021, but management feels a reason for the delay in its effectiveness is the complexity of describing the business concept involving a new trading platform using blockchain and its compatibility to operate within the broker dealer eco-system. Management believes the platform concept will be compliant with existing back-office operations after the registration becomes effective. Management intends to focus its efforts on locating an Alternative Trading System, Broker Dealer or Exchange to host and quote our platform."
BlackStar is developing the BlackStar Digital Trading Platform TM, a peer-to-peer digital trading platform of electronic fungible shares based on the blockchain. The platform is intended to be licensed to public companies whose stock is traded over-the-counter. Companies that license the platform would have a customizable interface that allows them to issue securities and facilitate public and private offerings. All transactions, customer data and corporate governance information would be recorded immutably on an Amazon Web Services-based blockchain. The Securities and Exchange Commission and the Financial Industry Regulatory Authority would have full access to all the information stored in the blockchain. BlackStar hopes that this increased transparency will mitigate many of the risks of investing in OTC Markets listed stocks and restore investor confidence in trading shares of OTC companies.
The registration statement is still under review by the SEC and there may be further comments by the SEC requiring revisions. The registration statement has not been declared effective.
Other Info:
http://www.blackstarenterprisegroup.com/investor-relations/
More information can be found in the Company's recently filings at the SEC web site: https://www.sec.gov/cgi-bin/browse-edgar?company=BlackStar+Enterprise&match=&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany
BlackStar Enterprise Group, Inc. (OTC:BEGI)
WEBSITE: blackstarenterprisegroup.com
EMAIL: info@blackstarenterprisegroup.com
FACEBOOK: BlackStar Enterprise Group Inc-BEGI
SEC Disclaimer
This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in BlackStar's ("the Company's") business plan. The creation of subsidiaries and expansion of services into new sectors should not be construed as an indication in any way whatsoever of the future value of the Company's common stock or its present or future financial condition. The Company's filings may be accessed at the SEC's Edgar system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
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SOURCE BlackStar Enterprise Group, Inc.
FAQ
What is the purpose of BlackStar's registration statement filed on August 1, 2022?
How does BlackStar plan to utilize the BlackStar Digital Trading Platform?
What are the implications of the SEC review on BlackStar's registration statement?
What is the expected impact of the blockchain technology on OTC stock trading?
