KUSTOM ENTERTAINMENT, INC. COMPLETES THE DIVESTITURE OF ITS NOBILITY HEALTHCARE SUBSIDIARY; SHARPENS ITS FOCUS ON $100 BILLION LIVE ENTERTAINMENT AND ONLINE TICKETING MARKETS

Core Viewpoint - Kustom Entertainment, Inc. has divested its 51% stake in Nobility Healthcare to focus on its live event production and online ticketing business, reflecting a strategic shift towards a high-growth market with a $100 billion global addressable market [1][2][8] Group 1: Transaction Details - The sale of the majority stake in Nobility Healthcare was completed for total estimated proceeds of $1.45 million, closing on January 8, 2026 [2] - The transaction included immediate liquidity of $100,000 in cash, $209,501 in debt and working capital credits, and a promissory note of $1,140,499 with 6% interest [5] Group 2: Strategic Shift - The divestiture allows the company to streamline operations and focus exclusively on live entertainment and online ticketing, which is expected to be the primary growth engine [2] - The company aims to control the entire fan experience from ticket purchase to the end of the event, enhancing its service offerings [2] Group 3: Event Expansion - The Country Stampede Music Festival, a key event with a 30-year legacy, will be central to the company's new strategy, serving as a model for scaling event production and ticketing services nationwide [3] - The 2026 Country Stampede will feature a diverse lineup, showcasing a deliberate booking strategy that appeals to various generations and fan bases [4][6] Group 4: Future Outlook - The company is actively seeking to add new accretive businesses and services that align with its focus on live music events and online ticketing, ensuring a lean corporate structure [7] - Management emphasizes the opportunity in the entertainment sector, moving from a regional to a nationwide strategy [8]