Global ventures meant to strengthen GNC’s finances

you position a product.”

Under the agreement, which still must receive regulatory approval, Harbin gets to pick five of the 11 GNC directors, two of whom will be independent. Mr. Martindale describes himself as “actually very bullish” about the expanded board, which he believes will bring additional experience and brain power.

Last Friday, S&P Global Ratings said it would maintain GNC’s CCC+ rating with negative implications. The S&P website says a CCC rating means there is a vulnerability to nonpayment “in the event of adverse business, financial, or economic conditions.”

Mr. Martindale has heard similar forecasts and worse for his company, including those who opine that GNC can’t compete anymore or that it has too many brickand-mortar stores (GNC has said it plans to close 200 stores this year) .

“Obviously I feel that they are wrong. I feel we have a tremendous opportunity,” he said in an interview following last week’s vote in favor of the Harbin partnership.

“I’m not one of the believers that specialty retail is going away.”

GNC shares have continued to languish, losing nearly half their value from 12 months ago. After flirting with $11 a share last July, GNC stock has traded below $4 nearly the entire spring.

Through the company’s agreement to issue just under 300,000 new shares to Harbin under the deal, giving it a 40 percent stake in the company, current stockholders now will see some dilution in their shares as well.

Still, the Harbin partnership “is the right thing to do,” Mr. Martindale said, and GNC shareholders apparently agree:

More than 94 percent of votes cast last week favored the Harbin deal.