Key Takeaways
- Kustom Entertainment, Inc. has sold its 51% ownership interest in Nobility Healthcare, LLC, for $1.45 million.
- The company is shifting its focus towards the live event production and online ticketing markets.
- The Country Stampede Music Festival is a key part of the company’s strategy, with plans to expand its footprint nationwide.
- The 2026 Country Stampede features a headlining lineup including Rascal Flatts, Zach Top, and Treaty Oak Revival.
- The company is seeking to add new accretive businesses and services that align with its new focus.
Introduction to Kustom Entertainment, Inc.
Kustom Entertainment, Inc. (Nasdaq: KUST) has announced the sale of its 51% ownership interest in Nobility Healthcare, LLC, a healthcare billing and revenue cycle management subsidiary. This move is part of the company’s strategic shift in focus towards its rapidly growing live event production and online ticketing markets business segment. The sale was made to the current 49% minority owner for total estimated proceeds of $1.45 million. The transaction closed on January 8, 2026, and was structured to provide immediate liquidity, debt and working capital credits, and long-term value through a promissory note.
Strategic Pivot to Live Entertainment and Online Ticketing
The divestiture of Nobility Healthcare represents a significant step in Kustom Entertainment’s strategic shift to streamline its operations and focus exclusively on live entertainment and online ticketing markets. The company’s live entertainment and online ticketing markets business segment manages live events and online ticketing services, which is positioned to become the company’s primary growth engine. The company’s 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, from the moment a ticket is purchased to the final encore of a live performance.
Expanding the Legacy of Country Stampede Music Festival
Central to this new strategy is the expansion of the Country Stampede Music Festival, the company’s primary live event. With a 30-year legacy as a premier Midwest event, the company plans to use the festival’s proven model as a launchpad to scale its event production and ticketing services nationwide. The 2026 Country Stampede, set for June 25-27, 2026, features a headlining lineup that brings together legacy success, breakout momentum, and red-hot independent appeal, including Rascal Flatts, Zach Top, and Treaty Oak Revival. This combination of acts on one bill reflects a deliberate booking strategy that spans generations, sub-genres, and fan bases, creating a lineup rarely found at a single country festival.
Future Outlook
The company is shedding non-core assets that do not fit its current emphasis on live music events and online ticketing. Moving forward, the company is actively seeking to add new accretive businesses and services that correlate with this new focus, ensuring a lean and specialized corporate structure. The company’s CEO, Stanton E. Ross, commented, "This divestiture of Nobility Healthcare allows us to sharpen our focus and allocate our resources toward the massive opportunity we see in the entertainment sector." The company is poised to pursue a dominant share of the $100 billion live event market worldwide, leveraging its Kustom Entertainment and TicketSmarter platforms.
Management Comments and Forward-Looking Statements
The company’s management is confident in its new strategy, with Ross stating, "We are moving from a regional focus with the Country Stampede Music Festival to a nationwide strategy." However, the company’s forward-looking statements are subject to risks and uncertainties, and actual future results may differ materially from historical results or those anticipated. The company assumes no duty to update forward-looking statements, except as required by law. The company’s periodic filings with the U.S. Securities and Exchange Commission, including its 2024 Annual Report on Form 10-K, provide more information on the risks and uncertainties associated with the company’s new strategy.
About Kustom Entertainment, Inc.
Kustom Entertainment, Inc. is a leader in live event production and ticketing technology, specializing in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually at the Azura Amphitheater in Bonner Springs, Kansas. The company also maintains a legacy segment engaged in video solution technology for law enforcement and security, currently integrating artificial intelligence to enhance its specialized product lines. For additional information, please visit the company’s websites at www.kustom440.com and www.digitalally.com.
