BlackStar Enterprise Group, Inc. announced that it has entered into a securities purchase agreement with returning investor Sixth Street Lending, LLC for a private placement of a convertible promissory note for gross proceeds of $55,750 on February 14, 2022. The note bears an interest rate of 10%. The note has a maturity date of February 14, 2023.

The note will convert into restricted common shares at a discount of 35% of the market price being the lowest trading price for the common stock during the 20 trading day period ending on the latest complete trading day prior to the conversion date. The note will additionally bear an interest rate of 22% per annum in the event of default. The company may prepay the note in whole or in part at any time, up to 180 days after the issue date, by paying the principal amount to be prepaid together with premium interest thereon to the date of prepayment which is 120% for 1-60 days, 125% for 61-90 days, 130% for 91-120 day, 135% for 121-180 days.

After 180 days from the issue date, the company may submit an optional prepayment notice to the investor. The securities are subject to exemption from securities registration by Rule 506 under Regulation D.as promulgated by the United States Securities and Exchange Commission under the 1933 Act, and/or Section 4(a)(2) of the 1933 Act. The company will pay $3,750 as legal and due diligence fees to the investor.