DivestmentJul 27, 2026, 08:31 AM
Kustom Entertainment Divestment Valuation Rises to $6.1M, Gets $250K Cash
AI Summary
Kustom Entertainment, Inc. announced an upgraded agreement for the divestment of its legacy video solutions business to Cycurion, Inc. The total valuation of the deal increased to $6.1 million, and Kustom received an immediate $250,000 non-refundable cash injection. The agreement also replaces previously planned warrants with $600,000 in high-yield Series H Preferred Stock from Cycurion, offering a 12.0% annual cumulative dividend. This strategic move completes Kustom's transformation into a pure-play live entertainment company, focusing on its rapidly expanding festival footprint and proprietary ticketing technology.
Key Highlights
- Divestment valuation for legacy video solutions business increased to $6.1 million.
- Received immediate $250,000 non-refundable cash payment from Cycurion.
- Total upfront cash consideration is $1.25 million, including the extension payment.
- Secured promissory note for $4.25 million with a 36-month term at 7% annual interest.
- $600,000 Series H Preferred Stock replaces 2,000,000 warrants at $2.80 strike price.
- Series H Preferred Stock offers a 12.0% annual cumulative dividend, paid quarterly.
- Targeted closing window for the divestment extended to September 15, 2026.
- Kustom Entertainment transforms into a pure-play live entertainment company.
Price Impact
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