Kustom Entertainment Closes Sale of 51% Stake in Nobility Healthcare
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy KUST?
Kustom Entertainment announced that it has closed the sale of its 51% ownership interest in Nobility Healthcare, its healthcare billing and revenue cycle management subsidiary. This step is in conjunction with its previously announced major corporate rebranding, by changing its name to Kustom Entertainment and its Nasdaq ticker symbol to "KUST". The Company sold its majority stake to the current 49% minority owner for total estimated proceeds of $1.45 million. The transaction closed on January 8, 2026, and was structured as follows: $100,000 in cash paid at closing; $209,501 in credits related to previous advances and net working capital; A promissory note in the principal amount of $1,140,499 bearing 6% interest, with quarterly payments commencing on the 20th business day of July 2026, subject to certain earn-out provisions
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Analyst Views on KUST
About KUST
Kustom Entertainment, Inc. is focused on live event production and ticketing technology. The Company specializes in large-scale music festivals, including the country stampede, and provides end-to-end event management and proprietary ticketing solutions for venues across the United States. The country stampede festival is the Company’s flagship event, celebrating music while fostering community and providing a platform for emerging talent.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Outlook: The company provided second-quarter sales guidance above estimates and raised its FY26 guidance, reflecting management's confidence in future growth, which could further drive stock price increases.
- Positive Stock Reaction: F5 shares jumped 10.9% to $299.99 in pre-market trading, indicating strong market response to its earnings report, which may draw in more investors and bolster market confidence.
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- Strategic Shift to Live Events: This divestiture allows Kustom to sharpen its focus on live event production and proprietary online ticketing, aligning with its Nasdaq rebranding strategy, as CEO Stanton E. Ross emphasized the significant opportunities in the entertainment sector.
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- Customer Base Expansion: This acquisition will provide Cycurion access to Kustom's extensive client footprint across all 50 U.S. states and over 30 countries, significantly enhancing its competitiveness in the public safety and enterprise markets and unlocking substantial cross-selling potential.
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See More
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- Liquidity Assurance: The transaction includes $100,000 in cash, $209,501 in debt and working capital credits, and a long-term promissory note of $1,140,499, ensuring liquidity during the transition phase.
- Event Expansion: Kustom plans to leverage the successful model of the Country Stampede Music Festival to scale its live event and ticketing services nationwide, aiming to attract more top-tier talent and audiences, thereby enhancing brand influence.
- Market Outlook: The company will focus on the $100 billion live event market, with the CEO stating intentions to pursue a dominant market share through the Kustom Entertainment and TicketSmarter platforms, ensuring effective resource allocation for long-term growth.
See More
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- Funding Structure: The transaction includes $100,000 in cash, $209,501 in debt and working capital credits, and a long-term promissory note of $1,140,499 at 6% interest, demonstrating a balance between liquidity and long-term value.
- Market Potential: By divesting healthcare assets, Kustom Entertainment aims to expand its footprint in the $100 billion global live event market, focusing on enhancing its ticketing platform's integration capabilities to improve customer experience.
- Event Expansion: The company plans to leverage the success of the Country Stampede Music Festival to promote its event production and ticketing services nationwide, attracting more top-tier artists and audiences to further solidify its market position.
See More
