Kustom Entertainment Amends Cycurion Deal, Shares Spike 53% After-Hours
KUST has more than doubled off its 52-week low of $0.851 on elevated volume (2.9× avg).
Summary
Kustom Entertainment (KUST) amended its asset-purchase agreement with Cycurion (CYCU), sweetening terms that sent both stocks soaring. The revised deal raises the valuation to $6.1 million, includes an immediate $250,000 non-refundable cash payment, and replaces 2 million canceled warrants with $600,000 in Series H Preferred Stock carrying a 12% annual cumulative dividend and a $1.45 conversion price. The closing deadline is extended to September 15. KUST jumped 53.39% to $1.81 in Thursday's after-hours session, while CYCU surged 495.85% to $1.61 in regular trading and added another 34.16% after hours. The move is amplified by KUST's 50.6% short interest, suggesting a short squeeze may be underway. This follows Cycurion's recent delisting risk and the prior disclosure that the original $30 million Halo Privacy acquisition was unlikely to close by July 31, making this amended deal a critical pivot. The sharp price action and restructured terms signal renewed deal momentum, but both companies remain micro-caps with significant financial challenges.
At the time of this announcement, KUST was trading at $1.81 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $739.7K. The 52-week trading range was $0.85 to $36.90. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.