DivestmentJul 27, 2026, 08:51 AM
Kustom Amends Divestment Terms, Adds $250K Cash, $600K Preferred Stock
AI Summary
Kustom Entertainment, Inc. announced an amendment to its Asset Purchase Agreement with Cycurion, Inc. for the divestment of its video-solutions division. The updated agreement extends the closing date to September 15, 2026, and includes an immediate, non-refundable cash payment of $250,000 to Kustom. Additionally, 2,000,000 warrants were replaced with $600,000 in Series H Preferred Stock, which accrues 12.0% annual dividends. This strategic move increases the total deal valuation to $6.1 million and allows Kustom to fully focus on its live entertainment business.
Key Highlights
- Amendment to Asset Purchase Agreement with Cycurion, Inc. for video-solutions division sale.
- Closing date extended to September 15, 2026.
- Immediate non-refundable cash payment of $250,000 received by Kustom Entertainment.
- 2,000,000 warrants replaced with $600,000 Series H Preferred Stock from Cycurion.
- Series H Preferred Stock accrues 12.0% annual cumulative dividends, convertible at $1.45.
- Total deal valuation increased to $6.1 million.
- Kustom Entertainment pivots to focus solely on live entertainment business.
Price Impact
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