PetMed Express, Inc. ( PETS ) shares are trading higher in the premarket session on Wednesday, after ending Tuesday's run with almost a 36% gain.

The strength is tied to strong gains over a takeover approach revealed on Tuesday. Cardone Ventures' unsolicited offer put the online pet pharmacy back in focus.

Cardone Ventures submitted an unsolicited all-cash proposal of $4.25 per share to buy PetMed Express ( PETS ).

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Deal Details

The bid implies an equity value of about $89 million. Cardone Ventures sent the proposal to PetMed Express' ( PETS ) board with no financing contingency, signaling confidence in closing.

The offer targets all outstanding shares.

Cardone Ventures said PetMeds' national pet pharmacy platform, customer relationships, fulfillment network and regulatory capabilities look attractive under private ownership.

The firm said it can use its acquisition playbook and operating discipline to improve execution, profitability and long-term growth.

"PetMed Express ( PETS ) has built a trusted brand and valuable operating infrastructure," said Brandon Dawson, Co-Founder and CEO of Cardone Ventures.

Dawson said the group's scaling approach could strengthen performance and help unlock value over time.

The proposal is non-binding. The parties may not reach a definitive agreement, and the deal may not close.

PETS Price Action: PetMed Express ( PETS ) shares were up 2.82% at $4.00 during premarket trading on Tuesday, according to Benzinga Pro data.

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