Cycurion Amends Kustom Entertainment Deal: $250K Cash, $600K Preferred Stock to Extend Closing to Sept 15

summarizeSummary

Cycurion amended its asset purchase agreement with Kustom Entertainment, paying $250,000 cash and issuing $600,000 in Series H Preferred Stock to extend the closing deadline to September 15, 2026.

check_boxKey Events · M&A and Partnerships · CYCU

• Deal Extension Secured

  After missing the original July 15 deadline, Cycurion and Kustom Entertainment amended their asset purchase agreement, pushing the closing date to September 15, 2026.

• Immediate Cash Payment

  A non-refundable $250,000 cash extension fee was paid, which will be credited against the purchase price if the deal closes.

• Warrants Replaced with Preferred Stock

  The original 2,000,000 warrants were cancelled and replaced with Series H Preferred Stock having a $600,000 stated value, accruing 12% annual dividends and convertible at $1.45 per share.

• Potential Dilution and Preferences

  The preferred stock carries a liquidation preference, anti-dilution protection, and registration rights, adding potential future dilution and senior claims on assets.

auto_awesomeAnalysis · CYCU · Technology

To push the closing of its video-solutions acquisition to September 15, Cycurion is paying a non-refundable $250,000 and replacing 2 million warrants with $600,000 in convertible preferred stock. The preferred carries a 12% dividend and converts at $1.45 per share — above today's $0.87, but the structure introduces potential dilution and a liquidation preference. With the company already facing a Nasdaq delisting and a separate $30M acquisition at risk of collapse, this amendment signals both commitment to the deal and mounting financial strain.