Kustom Entertainment to sell video unit to Cycurion for up to $5.5M

Kustom Entertainment, Inc. (NASDAQ: KUST) has entered into a binding agreement to divest its legacy video solutions division to Cycurion, Inc. (NASDAQ: CYCU) for total consideration of up to $5.5 million, according to a company press release.

The deal includes $1.25 million in upfront cash and a $4.25 million secured promissory note payable over 36 months at 7% interest. Kustom will also receive 2,000,000 warrants to purchase Cycurion common stock. Based on total consideration of $5.5 million, the company said the transaction equates to approximately $5.33 per estimated current outstanding common share. The deal is expected to close in July 2026, subject to customary closing conditions.

The divestiture follows Kustom's earlier sale of its medical billing business and a previously announced multi-year partnership between its subsidiary Kustom 440, Inc. and Ruffin Properties, LLC, owner of Gilley's Park City in Park City, Kansas.

"This divestiture sharpens our focus and allows us to direct resources toward the significant opportunity we see in the entertainment sector," said Stanton E. Ross, CEO of Kustom Entertainment. "This transaction gives us the capital and operational clarity needed to accelerate the expansion plans we launched last month."

Kustom's flagship Country Stampede Music Festival marks its 30th anniversary June 25–27, 2026, at the Azura Amphitheater in Bonner Springs, Kansas. The 2027 edition is scheduled to move to Gilley's Park City from June 25–27, 2027. The venue move is expected to increase capacity to up to 35,000 people per show and includes plans for more than 20 show days in 2027 across multiple events.

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