GNC Holdings Inc. shares GNC, +0.61% soared 35% in premarket trade Tuesday, after the health and performance supplements retailer said it will receive a $300 million China investment from China-based drugmaker Harbin Pharmaceutical Group Holding Co. (Hayao), as part of a strategic partnership and China joint venture agreement.
The investment makes Hayao the largest GNC shareholder. GNC is also looking to extend the maturity date of its existing term loan facility by two years to March 2021. Separately, the company GNC reported a fourth-quarter net loss that narrowed to $209.8 million, or $2.99 a share, from $433.4 million, or $6.35 a share, in the same period a year ago.
Excluding non-recurring items, the adjusted profit per share came to 25 cents, matching the FactSet consensus. Revenue fell to $557.7 million frmo $569.9 million, missing the FactSet consensus of $568.8 million. Same-store sales rose 5.7% in domestic company-owned stores, but decreased 2.0% in domestic franchise stores. The stock has plunged 30% over the past three months through Monday, while the S&P 500 SPX, +0.26% rose 2.8%.
Source: Market Watch