Kustom Entertainment, Inc. has entered into a non-binding Memorandum of Understanding with Cycurion, Inc. to sell its video solutions business, a move expected to generate between $6.0 million and $8.5 million in total transaction value. Under the agreed structure, Kustom would receive $1.0 million to $1.4 million in cash at closing, with the balance paid in Cycurion preferred stock. The deal remains subject to customary closing conditions and final negotiation, and is designed to deliver immediate liquidity while preserving potential long-term equity upside for Kustom shareholders.

Proceeds from the divestiture will be redeployed to accelerate Kustom’s core operations in live event production and its proprietary online ticketing platform. The company’s management highlights a global addressable market estimated at $100 billion for live entertainment and ticketing services. This transaction coincides with Kustom’s recent rebranding initiative and adoption of its new Nasdaq ticker, helping to crystallize the company’s identity as an end-to-end provider of concert and festival experiences.

Kustom’s flagship event, the Country Stampede Music Festival, marks its 30th anniversary in 2026 and has drawn over 50,000 attendees annually to the Azura Amphitheater in Bonner Springs, Kansas. This year’s lineup features legacy acts Rascal Flatts alongside rising artists Zach Top and Treaty Oak Revival. Management intends to replicate the Country Stampede model in new regional markets, using integrated ticketing technology to capture higher per-ticket revenue and deepen fan engagement through seamless online-to-venue experiences.