Kustom Entertainment Sells 51% Stake in Nobility Healthcare for $1.45 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
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Should l Buy KUST?
Source: Globenewswire
- Strategic Restructuring: Kustom Entertainment's sale of its 51% stake in Nobility Healthcare for $1.45 million signifies a strategic pivot towards the rapidly growing live entertainment and online ticketing markets, expected to enhance its competitive positioning.
- 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.
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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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- Stock Surge: Kustom Entertainment Inc. shares jumped 40.28% in after-hours trading to $2.96, reflecting strong market sentiment following the announcement of its video solutions division divestiture.
- Video Division Sale Agreement: The company entered a non-binding Memorandum of Understanding with Virginia-based Cycurion Inc. for a transaction valued between $6 million and $8.5 million, with $1 million to $1.4 million in cash and the remainder in Cycurion preferred stock.
- 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.
- Market Performance Analysis: Kustom's Relative Strength Index (RSI) stands at 43.19, with a market capitalization of $1.69 million; the stock has a 52-week high of $4.48 and a low of $1.80, indicating that its recovery potential needs further confirmation given its proximity to the low end of its range.
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- Transaction Overview: Cycurion has signed a Memorandum of Understanding to acquire Kustom Entertainment's video solutions division for $6-8.4 million, with $1-1.4 million in cash and the remainder in preferred stock, indicating strong confidence in future growth.
- Revenue Growth Expectations: The acquisition is expected to increase Cycurion's revenues by approximately $5.1 million, or 35%, in 2026 compared to 2025, while adding $8 million in backlog from established contracts, further solidifying its market position and enhancing recurring revenue capabilities.
- 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.
- Market Reaction: Following the announcement, Cycurion's shares rose 3.89% to $2.60, reflecting positive market sentiment towards the acquisition, while Kustom's shares fell 3.26% to $2.08, indicating investor concerns about its future performance.
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- Strategic Restructuring: Kustom Entertainment's sale of its 51% stake in Nobility Healthcare for $1.45 million signifies a strategic pivot towards the rapidly growing live entertainment and online ticketing markets, expected to enhance its competitive positioning.
- 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

- Strategic Restructuring: Kustom Entertainment has completed the sale of its 51% stake in Nobility Healthcare for $1.45 million, marking a significant strategic shift towards the rapidly growing live entertainment and online ticketing markets.
- 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.
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