OVERLAND PARK, KS, Jan. 22, 2026 (GLOBE NEWSWIRE) -- Kustom Entertainment, Inc. (Nasdaq: KUST) (the “Company”) today announced that it has entered into a non-binding Memorandum of Understanding (“MOU”) with Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion”) to divest its video solutions division. The divestiture of the Company’s video solutions business supports the Company’s strategic focus on its rapidly growing live event production and proprietary online ticketing operations, aligning with its broader rebrandin ...

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]

Core Insights - The company is rebranding from Digital Ally, Inc. to Kustom Entertainment, Inc. to align with its strategic focus on the live event production and ticketing market, which is valued at over $100 billion [1] - A 1-for-3 reverse stock split will take effect, with trading on a split-adjusted basis starting January 8, 2026 [2][3] - The company is expanding its live events portfolio nationally, leveraging the success of the Country Stampede Music Festival as a model for large-scale events [4] Market Overview - The global music industry is projected to grow from $105 billion in 2024 to nearly $200 billion by 2035, despite a slowdown in growth to 6.2% in 2024 from 15.6% in 2023 [5] - Live music is expected to grow at a compounded annual growth rate of 7.2% from 2024 to 2030, driven by demand from millennials and Gen Z [6] Strategic Focus - The company's ticketing platform aims to provide a comprehensive solution for both its events and third-party venues, enhancing the overall fan experience [7] - The CEO emphasized the importance of the name change and the focus on live event production and ticketing platforms to meet the growing demand for in-person experiences [8] Company Information - Kustom Entertainment, Inc. specializes in large-scale music festivals and offers end-to-end event management and ticketing solutions across the U.S., with the Country Stampede Festival being a flagship event [11]