Kustom swaps warrants for preferred stock in upgraded $6.1M Cycurion asset sale
What's the deal? Kustom EntertainmentDealroom has a profile for this one. Try Dealroom → (Nasdaq: KUST) has amended its agreement to sell its legacy video solutions business to CycurionDealroom has a profile for this one. Try Dealroom → (Nasdaq: CYCU), raising the total valuation to $6.1 million. The revised terms, signed on 23 July 2026, add an immediate $250,000 non-refundable cash payment and replace planned warrants with high-yield preferred stock.
How the terms break down: The $6.1 million consideration includes $1.25 million in upfront cash — inclusive of the $250,000 extension payment — and a $4.25 million secured promissory note carrying 7% annual interest over 36 months.
What changed? Kustom canceled 2,000,000 warrants priced at a $2.80 strike, swapping them for $600,000 of newly created Series H Preferred Stock issued by Cycurion. The preferred shares pay a 12% annual cumulative dividend, settled quarterly in Cycurion common stock.
Read more: Yahoo Finance
