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OVERLAND PARK, KS, Jan. 12, 2026 (GLOBE NEWSWIRE) — Kustom Entertainment, Inc. (Nasdaq: KUST) (the \u201cCompany\u201d), <\/b>today announced that it has closed the sale of its 51% ownership interest in Nobility Healthcare, LLC, 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, Inc.<\/b> and its Nasdaq ticker symbol to \u201cKUST<\/b>\u201d. The divestiture of the Company\u2019s healthcare billing and revenue-cycle management business and previous name and ticker symbol change reflect the Company\u2019s strategic shift in focus toward its rapidly growing live event production business and its proprietary on-line ticketing platform.<\/p>\n
Transaction Details – <\/b>The Company sold its majority stake to the current 49% minority owner for total estimated proceeds of $1.45 million<\/b>. The transaction closed on January 8, 2026, and was structured as follows:<\/p>\n \u00a0<\/p>\n<\/td>\n \u25cf<\/p>\n<\/td>\n Immediate Liquidity:<\/b> $100,000 in cash paid at closing.<\/p>\n<\/td>\n<\/tr>\n \u00a0<\/p>\n<\/td>\n \u00a0<\/p>\n<\/td>\n \u00a0<\/p>\n<\/td>\n<\/tr>\n \u00a0<\/p>\n<\/td>\n \u25cf<\/p>\n<\/td>\n Debt & Working Capital Credits:<\/b> $209,501 in credits related to previous advances and net working capital.<\/p>\n<\/td>\n<\/tr>\n \u00a0<\/p>\n<\/td>\n \u00a0<\/p>\n<\/td>\n \u00a0<\/p>\n<\/td>\n<\/tr>\n \u00a0<\/p>\n<\/td>\n \u25cf<\/p>\n<\/td>\n Long-term Value:<\/b> A promissory note in the principal amount of $1,140,499<\/b> bearing 6% interest, with quarterly payments commencing on the 20th<\/sup> business day of July 2026, subject to certain earn-out provisions.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n Expanding the Legacy of Country Stampede Music Festival – <\/b>Central to this new strategy is the expansion of its primary live-event, the Country Stampede Music Festival. With a 30-year legacy as a premier Midwest event, the Company plans to use the festival\u2019s proven model as a launchpad to scale its event production and ticketing services nationwide. Past headliners have included Taylor Swift, Alan Jackson, Morgan Wallen and Eric Church<\/b>, establishing the festival as a consistent draw for top-tier talent and multi-day audiences.<\/p>\n<\/p><\/div>\n \n\n
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Strategic Pivot to High Growth Live Entertainment and Online Ticketing Markets – <\/b>The divestiture represents a significant step in the Company\u2019s strategic shift to streamline its operations and focus exclusively on live entertainment and online ticketing markets business segment. The Company\u2019s live entertainment and online ticketing markets business segment manages live events and online ticketing services, which is positioned to become the Company\u2019s primary growth engine. The Company\u2019s ticketing platform is designed to provide a vertically integrated solution for its own events and third-party events and venues. This shift allows the Company to control the entire fan experience\u2014from the moment a ticket is purchased to the final encore of a live performance. By offloading its healthcare assets, the Company intends to aggressively expand its footprint in the live event management and online ticketing platform business \u2014 a sector with an estimated $100 billion global addressable market.<\/p>\n