DivestmentAug 4, 2026, 09:41 AM
Kustom Entertainment Completes $6.1M Divestment of Video Solutions Business
AI Summary
Kustom Entertainment, Inc. completed the divestiture of its legacy video solutions business to Cycurion, Inc. for an aggregate consideration of $6.1 million. The transaction, which closed on August 3, 2026, included a $1.25 million cash payment, a $4.25 million secured promissory note, and $600,000 in Cycurion's Series H Convertible Preferred Stock. This divestment marks 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 video solutions business to Cycurion for $6.1 million.
- Received $1.25 million in upfront cash consideration.
- Obtained a $4.25 million secured promissory note with 7.0% annual interest.
- Received $600,000 in Cycurion Series H Preferred Stock with 12.0% annual dividend.
- Strategic pivot to become a pure-play live entertainment and ticketing technology company.
- Plans to expand Country Stampede Music Festival capacity to 35,000 fans.
- Aims for over 20 planned live event days across 2026 and 2027.
- Continues rolling out proprietary end-to-end ticketing technology platform.
Price Impact
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