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Kustom Entertainment Closes $6.1 Million Divestiture of Legacy Video Solutions Business to Cycurion

KUSTCYCU
  • Kustom Entertainment Inc. completed the divestiture of its legacy video solutions assets to Cycurion Inc. on August 3, 2026.
  • The transaction total value is $6.1 million, comprising $1.25 million in upfront cash, a $4.25 million secured promissory note, & $600,000 in Preferred Equity.
  • The $4.25 million note is a 36-month instrument bearing 7.0% annual interest to provide recurring debt service cash flow.
  • The $600,000 Preferred Equity features a 12.0% annual cumulative dividend payable quarterly in Cycurion common stock shares.
  • The Preferred Stock includes a $1.45 conversion price with anti-dilution protections, senior liquidation preferences, & registration rights.
  • Kustom has completed its strategic pivot to become a pure-play live entertainment & ticketing technology company.
  • The company will focus 100% of resources on expanding its festival footprint, advancing proprietary ticketing platforms, & accelerating revenue growth.
  • Kustom plans to expand the Country Stampede Music Festival to Gilley's Park City in 2027 with doubled capacity to 35,000 fans per show.
  • The firm has an event pipeline of over 20 planned live event days across 2026 & 2027 anchored by Country Stampede.
  • Kustom continues to deploy its end-to-end proprietary ticketing technology to capture transactional economics across the live event lifecycle.