DivestmentApr 17, 2026, 07:01 AM
Kustom Entertainment Revises $5.5M Divestment Terms with Cycurion
AI Summary
Kustom Entertainment, Inc. and Cycurion, Inc. announced a revised, non-binding Memorandum of Understanding for the sale of Kustom's legacy video solutions segment to Cycurion. The aggregate purchase price is $5.5 million, structured with immediate cash, a secured promissory note, and equity upside through warrants. Both companies anticipate the transaction will close on or prior to June 30, 2026, allowing Kustom to focus on core growth and Cycurion to expand its technology offerings.
Key Highlights
- Total purchase price for the video solutions segment is $5,500,000.
- Includes a $1,250,000 cash down payment at closing.
- A $4,250,000 secured promissory note with 7% interest, payable in 36 months.
- Kustom to receive 2,000,000 common stock purchase warrants at $2.80 exercise price.
- Earn-out and clawback mechanism capped at $1,000,000 based on net income milestones.