Kustom Entertainment amends Cycurion asset sale to $6.1M deal

Kustom Entertainment, Inc. (Nasdaq: KUST) announced an amendment to its asset purchase agreement with Cycurion, Inc. (Nasdaq: CYCU) for the sale of Kustom's legacy video solutions business, raising the total deal value to $6.1 million. The amendment, executed July 23, 2026, extends the targeted closing date to September 15, 2026.

Under the revised terms, Cycurion has made an immediate $250,000 non-refundable cash payment to Kustom. The total upfront cash consideration is $1.25 million, with the remaining $4.25 million structured as a secured promissory note carrying a 36-month term at 7% annual interest.

The amendment also replaces previously planned warrants with $600,000 in newly created Series H Preferred Stock issued by Cycurion. The preferred stock carries a 12% annual cumulative dividend paid quarterly in Cycurion common shares, a $1.45 conversion price, and includes liquidation preferences, class voting protections, and registration rights. The original 2,000,000 warrants at a $2.80 strike price have been canceled.

Kustom said all conditions precedent under the original agreement have been satisfied or waived by both parties.

"This upgraded agreement is a win-win: it underscores Cycurion's resolute commitment to acquiring our legacy assets while immediately fortifying Kustom's balance sheet with non-refundable capital and high-yield preferred equity," said Stanton E. Ross, CEO of Kustom Entertainment.

Kustom separately noted its Country Stampede Music Festival marked its 30th anniversary in June 2026 and is planned to expand to a new venue in Park City, Kansas, for 2027, with capacity of 35,000 per show. The company said it has more than 20 live event days planned across 2026 and 2027.

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