Digital Ally(US:DGLY) Benzinga·2026-01-28 04:36Core Viewpoint - Kustom Entertainment Inc. announced a non-binding agreement to divest its video solutions division, resulting in a significant increase in its stock price by 40.28% in after-hours trading [1] Group 1: Divestiture Details - Kustom Entertainment has entered a Memorandum of Understanding with Cycurion Inc. to sell its video solutions business for a transaction value between $6.0 million and $8.5 million, based on pro forma financials [2] - The deal structure includes cash consideration of $1.0 million to $1.4 million, with the remainder to be paid in Cycurion preferred stock [2] Group 2: Strategic Focus - The divestiture aligns with Kustom's strategic shift towards live event production and proprietary online ticketing operations, supporting its Nasdaq rebranding initiative [3] - CEO Stanton E. Ross emphasized that the divestiture allows the company to focus resources on opportunities within the entertainment sector [3] Group 3: Trading Metrics and Performance - Kustom Entertainment's stock has a market capitalization of $1.69 million, with a 52-week high of $4.48 and a low of $1.80, indicating a challenging year with a stock decline of 99.88% [4] - The Relative Strength Index (RSI) stands at 43.19, and the stock is currently near the lower end of its 52-week range, just 11.57% above its low [4][5]