Galaxy Gaming, Inc. Cancels Warrants; Pays ~$1.2M

What Happened
Galaxy Gaming, Inc. (GLXZ) announced on August 12, 2026 that it entered into warrant cancellation agreements with three Fortress‑affiliated funds to cancel warrants to purchase an aggregate 778,320 shares of common stock. The warrants were originally issued on November 15, 2021 in connection with a senior secured term loan from Fortress Credit Corp. The company paid approximately $1.2 million in cash (funded from cash on hand) to the warrant holders, and upon execution the warrants were cancelled and deemed null and void ab initio. Galaxy issued a press release on August 17, 2026 announcing the agreements.

Key Details

• Warrants cancelled: 778,320 shares (originally issued November 15, 2021).
• Counterparties: Drawbridge Special Opportunities Fund LP, Fortress Lending II Holdings LP, Fortress Lending Fund II MA-CRPTF LP (Fortress affiliates).
• Cash paid: approximately $1.2 million in aggregate, funded from the Company’s cash on hand.
• Status change: warrants cancelled upon execution and the Company reports no warrants outstanding following the transaction.
• Background: the related Fortress credit facility was repaid and terminated on January 6, 2025.

Why It Matters
For investors, the cancellation removes a potential source of future share dilution (778,320 shares) and simplifies the company’s capitalization by eliminating these outstanding warrants. The transaction used about $1.2M of cash on hand, which is a straightforward cash outflow disclosed in the 8‑K. These are concrete, non‑recurring items disclosed by the company—helpful when assessing dilution risk and short‑term liquidity, but not an earnings or operational result.