DivestmentJun 25, 2026, 07:31 AM
Kustom Entertainment Divests Video Division for $5.5M
AI Summary
Kustom Entertainment, Inc. announced a binding agreement to divest its legacy video solutions division to Cycurion, Inc. for a total consideration of $5.5 million, including $1.25 million in upfront cash and a $4.25 million secured promissory note, plus 2,000,000 warrants for Cycurion common stock. This strategic move aims to accelerate Kustom's focus on its rapidly growing live event production and online ticketing operations. The company also highlighted the expansion of its Country Stampede Music Festival to Gilley's Park City in 2027, which will significantly increase capacity and enhance fan experience.
Key Highlights
- Divested legacy video solutions division to Cycurion, Inc. for $5.5 million.
- Consideration includes $1.25 million upfront cash and a $4.25 million secured promissory note.
- Kustom Entertainment will receive 2,000,000 warrants to purchase Cycurion common stock.
- Transaction equates to approximately $5.33 per estimated current outstanding common share.
- Divestiture expected to close in July 2026, subject to closing conditions.
- Company's flagship Country Stampede Music Festival will move to Gilley's Park City in 2027.
- New venue at Gilley's Park City will nearly double capacity to 35,000 people per show.
Price Impact
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