Galaxy Gaming paid off a senior secured loan from Fortress Credit Corp. in January 2025. The warrants that Fortress received alongside that loan in 2021 were a different matter — they stayed outstanding for another 18 months, until the company bought them out.
On August 12, 2026, Galaxy Gaming signed cancellation agreements with three Fortress affiliates — Drawbridge Special Opportunities Fund LP, Fortress Lending II Holdings LP, and Fortress Lending Fund II MA-CRPTF LP — and paid about $1.2 million in cash in total to retire warrants covering 778,320 shares, according to an 8-K filed with the SEC on August 17. The cash came from the company's existing holdings. Following the transaction, Galaxy Gaming says it has no warrants outstanding.
A warrant gives its holder the right to buy shares at a fixed price. If that price sits below the market price, exercising the warrant creates new shares — and every new share makes the ones already held worth a smaller slice of the same company. Paying to cancel them eliminates that possibility. The filing does not state the original exercise price of the Fortress warrants, so it is not possible to determine from the filing whether Fortress would have exercised them or let them expire.
The filing also does not say when the warrants would have expired, or why the company chose August 2026 — rather than any earlier point — to retire them. The gap between loan repayment and warrant cancellation is not explained.