DivestmentJun 25, 2026, 09:31 AM
Kustom Entertainment Divests Video Solutions Segment for Up to $5.5M
AI Summary
Kustom Entertainment, Inc. announced it has entered into an Asset Purchase Agreement to divest its video-solutions division to Cycurion, Inc. The transaction, valued at up to $5.5 million in cash and a secured promissory note, also includes 2,000,000 warrants to purchase Cycurion common stock. This strategic move is intended to accelerate Kustom's complete focus on its rapidly growing live event production portfolio and proprietary online ticketing operations, aligning with its recent rebranding and Nasdaq ticker symbol "KUST". The divestiture is anticipated to close on July 15, 2026.
Key Highlights
- Kustom Entertainment to sell its video-solutions division to Cycurion, Inc.
- Consideration includes $1.25 million in upfront cash.
- A $4.25 million secured promissory note payable over 36 months at 7% interest.
- Contingent cash consideration of up to $1 million based on earnout conditions.
- 2,000,000 warrants to purchase Cycurion common stock at an exercise price of $2.80 per share.
- Transaction is expected to close on July 15, 2026.
- Divestiture is part of a strategic pivot to focus on live entertainment and ticketing.
- Total consideration of $5.5 million equates to approximately $5.33 per outstanding common share.
Price Impact
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