DivestmentAug 4, 2026, 08:58 AM
Kustom Entertainment Completes $6.1M Divestment, Becomes Pure-Play Live Entertainment Co.
AI Summary
Kustom Entertainment, Inc. announced the successful closing of its $6.1 million divestiture of legacy video solutions business assets to Cycurion, Inc. The transaction included $1.25 million in upfront cash, a $4.25 million secured promissory note, and $600,000 in high-yield Series H Preferred Stock. This divestment completes Kustom's strategic transformation into a pure-play live entertainment and ticketing technology company, allowing it to focus resources on expanding its festival footprint and proprietary ticketing platforms.
Key Highlights
- Completed divestiture of legacy video solutions business assets to Cycurion, Inc. for $6.1 million.
- Received $1.25 million in upfront cash consideration, including a $250,000 non-refundable payment.
- Secured a $4.25 million promissory note with 7.0% annual interest, payable over 36 months.
- Obtained $600,000 in Cycurion Series H Preferred Stock, yielding a 12.0% annual cumulative dividend.
- Company transitions to a pure-play live entertainment and ticketing technology business.
- Plans to expand Country Stampede festival, doubling capacity to 35,000 fans per show by 2027.
Price Impact
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