Kustom Entertainment, Inc. Announces Reverse Stock Split

Authorized preferred shares are unaffected by the reduction in authorized common shares.

Rhea-AI Summary

Kustom Entertainment (KUST) announced a 1-for-10 reverse stock split, with split-adjusted Nasdaq trading expected to begin October 1, 2026.

The split is intended to raise the per-share trading price enough to meet the Nasdaq Capital Market’s $1.00 minimum bid requirement for continued listing. Outstanding common shares will change from 6,506,860 to 650,686, subject to adjustment when fractional shares are rounded up. The company is also reducing authorized common shares from 13,333,333 to 1,333,334. Its board approved the split on September 18, 2026.

Positive

• Minor point. Forward-looking: it has not happened yet and may not happen.Authorized common shares fall from 13,333,333 to 1,333,334.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.The 1-for-10 reverse split aims to meet Nasdaq’s $1.00 minimum bid requirement for continued listing.

Market Context

The Apr 20 reverse-split announcement was followed by a 1.52% 24-hour gain; that prior observation i...

Analysis

The Apr 20 reverse-split announcement was followed by a 1.52% 24-hour gain; that prior observation is a relevant comparison, but one instance does not establish a pattern for this announcement.

Key Figures

Reverse split ratio: 1-for-10 Split-adjusted trading date: October 1, 2026 Minimum bid price requirement: $1.00 +4 more

Reverse split ratio

1-for-10

Announced reverse stock split

Split-adjusted trading date

October 1, 2026

Anticipated start of split-adjusted trading on Nasdaq Capital Market

Minimum bid price requirement

$1.00

Nasdaq Capital Market continued-listing requirement cited by the company

Outstanding common shares before split

6,506,860 shares

Before reverse stock split; subject to fractional-share adjustment after split

Outstanding common shares after split

650,686 shares

Following reverse stock split; subject to rounding up fractional shares

Authorized common shares before reduction

13,333,333 shares

Before proportional capital stock reduction

Authorized common shares after reduction

1,333,334 shares

Following proportional capital stock reduction

Previous Stock split Reports

1 past event · Latest: Apr 20

Same Type 1 event

1. Apr 20

   Reverse stock split

   24h Move

   +1.5%

   Announced a 1-for-5 reverse split to address Nasdaq's minimum bid-price requirement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, cusip number, book-entry form, street name

4 terms

reverse stock split financial

"announced a 1-for-10 reverse split"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

cusip number technical

"will have a new CUSIP number"

A CUSIP number is a nine-character code that uniquely identifies a specific U.S. or Canadian stock, bond, or other security, similar to a barcode or a social-security number for a financial instrument. It matters to investors because it removes confusion between similar securities, ensures trades and settlements are applied to the correct issue, and helps locate official documents and transaction records quickly.

book-entry form financial

"hold their shares of Common Stock in book-entry form"

A book-entry form is an electronic record showing ownership of securities instead of a paper certificate; think of it like a bank account ledger that notes who owns shares. It matters to investors because it makes buying, selling and transferring securities faster, safer and cheaper by reducing paperwork, loss or forgery risk, and enabling easier settlement through brokers or a central depository.

street name financial

"brokerage accounts or "street name""

A "street name" is a way that stocks or other financial assets are registered under a broker's name rather than directly in an individual investor's name. This allows for easier buying, selling, and transferring of the assets, much like how a library might hold books on behalf of many readers. For investors, using a street name simplifies transactions and helps maintain privacy, but it also means the broker is the official record holder of ownership.

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Olathe, KS, Sept. 29, 2026 (GLOBE NEWSWIRE) -- Kustom Entertainment, Inc. (NASDAQ: KUST) (the “Company”), a leader in live event production and ticketing technology, today announced a 1-for-10 reverse split (the "Reverse Stock Split") of the Company’s common stock (the "Common Stock") and proportional reduction of the number of shares of Common Stock authorized (the “Capital Stock Reduction”). The Company anticipates that the Common Stock will begin trading on the Nasdaq Capital Market (“Nasdaq”) on a split-adjusted basis at the start of trading on October 1, 2026 and will have a new CUSIP number of 25382T705.

The Reverse Stock Split is being implemented to increase the per share trading price of the Company’s Common Stock for the purpose of ensuring a share price high enough to comply with the minimum $1.00 bid price requirement for continued listing on The Nasdaq Capital Market.

On September 18, 2026, the Company’s board of directors approved a 1-for-10 Reverse Stock Split. The number of outstanding shares of Common Stock prior to the Reverse Stock Split is 6,506,860 and the number of outstanding shares of Common Stock following the Reverse Stock Split is 650,686, subject to adjustment for the rounding up of fractional shares.

The number of authorized shares of Common Stock prior to the Capital Stock Reduction was 13,333,333. The number of authorized shares of Common Stock following the Capital Stock Reduction is 1,333,334. The number of authorized shares of preferred stock is not affected.

Information to Stockholders

Nevada Agency and Transfer Company (“NATCO”), the Company’s transfer agent, will send instructions to stockholders of record who hold stock certificates regarding the exchange of certificates for Common Stock. Stockholders who hold their shares of Common Stock in book-entry form or in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares of Common Stock following the Reverse Stock Split. NATCO may be reached for questions at 775-322-5623.

About Kustom Entertainment, Inc. - Kustom Entertainment, Inc. is a leader in live event production and ticketing technology. The company specializes in large-scale music festivals, including the legendary Country Stampede, and provides end-to-end event management and proprietary ticketing solutions for venues across the United States. The Country Stampede Festival is one of the company’s flagship events, celebrating the best in country music while fostering community and providing a platform for emerging talent. For more information, visit http://www.kustoment.com/

Forward-Looking Statements

The foregoing material may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Reverse Stock Split, Capital Stock Reduction, and references to the live event production business, and can be identified by the use of words such as “may,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” “believe,” “potential,” “should,” “continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned, including, without limitation, risks and uncertainties related to the growth of the live event industry, and there being no guarantee that the trading price of the Company’s Common Stock will be indicative of the Company’s value. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Kustom Entertainment, Inc.
Phone: (913) 456-KUST (5878)
Email: info@kustoment.com
Website: www.kustoment.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Kustom Entertainment’s reverse stock split take effect, and what is the ratio?

Kustom Entertainment expects its common stock to begin split-adjusted trading on October 1, 2026, following a 1-for-10 reverse split.

What must Kustom Entertainment shareholders do for the reverse stock split?

Holders of stock certificates will receive instructions from the transfer agent for exchanging them. Shareholders whose common shares are held in book-entry form or brokerage accounts do not need to take action to exchange their shares.