PetMed Express Inc (NASDAQ:PETS) experienced a sharp market move Monday, with its shares climbing 26.6% in intraday trading even as a potential buyer lowered its cash proposal for the company.
SilverCape Investments Limited, a Singapore-based single family office and a roughly 12% shareholder in PetMed, announced a revised acquisition bid of $3 per share in cash. That amount represents a reduction from an earlier $4-per-share proposal that the firm made on December 11, 2025. SilverCape noted the revised figure equates to roughly a 70% premium to PetMed’s closing price of $1.76 on June 26, 2026.
In an open letter released Sunday, SilverCape set out concerns that prompted the change in its offer. The investor pointed to what it described as a dismal quarterly and fiscal year report issued by PetMed earlier this month and said the company’s performance had continued to worsen since the initial proposal. SilverCape singled out declines in prescription-medication revenue, a drop in repeat-customer revenue, and rising costs that have pushed adjusted EBITDA and operating cash flow into negative territory.
SilverCape’s letter also referenced PetMed’s deteriorating cash position. According to the investor, the company’s cash balance fell from $54.7 million to $21.4 million over the last fiscal year. The letter further noted that PetMed’s most recent 10-K filing included a warning that the company’s financial condition may raise substantial doubt about its ability to continue as a going concern.
Beyond the financial figures, SilverCape criticized PetMed’s board for rejecting the original $4 per share proposal and a subsequently described $4.25 per share bid without engaging meaningfully with the investor. The letter urged the board to either open discussions with SilverCape or run a bona fide process to explore a sale of the company. It also highlighted leadership instability at PetMed, citing the departures of two chief executives and two chief financial officers over the past two years.
The market reaction on Monday reflected the immediate impact of the revised offer and the possibility of a transaction: shares jumped 26.6% despite the lower cash proposal. For perspective on the stock’s longer-term trajectory, the company’s shares previously traded at $32.30 on July 2, 2021, a level far above the recent closing price of $1.76 reported on June 26, 2026.
SilverCape’s position as a significant shareholder and its public letter place renewed focus on PetMed’s financial state and governance. The investor’s call to action leaves the board with a choice to engage with the revised bid or to initiate a formal sale process, while the company’s financial disclosures signal material challenges that bear on its path forward.
Contextual note: The details above reflect the statements and filings cited by SilverCape in its communications regarding PetMed’s results and financial condition.