BlackStar's Patent Portfolio
Frequently Asked Question – B.D.T.P.™
Are the shares traded on the B.D.T.P.™ platform a different class of common stock?
The shares that may be traded on the B.D.T.P.™ Platform in the future, if approvals were granted, would also be “normal” shares of common stock, of the same and only class of common stock as owned by existing shareholders. To use the B.D.T.P.™ platform, the shares of the shareholder must be in an electronic share format, accomplished via the standard DWAC procedure. The ownership and voting rights of all shareholders of common stock are identical and the Company only has one class of common stock authorized.
Do the common shares need to be exchanged for electronic fungible shares to use the platform?
The B.D.T.P.™, once approved and operational, currently contemplates executing orders for common shares in an electronic fungible form, also known as a digital share. There is no exchange of shares needed; however, the shareholder would need to have their shareholdings in an electronic form, accomplished via the DWAC process through a broker dealer and the transfer agent.
Will the BEFS traded on the proposed B.D.T.P.™ trade at different prices than the OTC Pink?
Because it is a distinct market from the OTC Pink, where the common shares currently trade, there is a possibility that the prices reflected for the common shares will differ across the trading markets. B.D.T.P.™, for instance, only accepts free trading securities (of Blackstar common stock) for cash and prohibits shorting. As a result, there could be a difference in price from one market to the next due to different liquidity in the markets as there are arbitrage opportunities in both separate trading venues.
Are the BEFS (Blackstar Electronic Fungible Shares – BEFS and not tokens) crypto assets or tokens?
The proposed B.D.T.P.™ 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, but instead our concept is to use Distributed Ledger Technology (a private blockchain) to execute, and record transactions with higher efficiency and lower cost, which is essentially a back-office function. The use of a blockchain to record transactions does not make shares of common stock traded on the platform “crypto” assets. The Company does not operate in the crypto asset market nor is it proposing to do so with the B.D.T.P.™.