RE:Circle MedicalIn Q2 Q&A, Shahbazi did't specify exactly what the strategic alternatives they have in mind for Circle Medical. I as well prefer if they can acquire the rest of CR and then spin it off along WISP or even sepretely.
4 benefits of stock spinoff investment (Source: TSI Network)
1- Spinoffs are born with the proverbial “silver spoon.” Parent companies may devote great effort to ensuring they have adequate finances and strong management. They want the spinoff to succeed, for their own prestige, and because they want spun-off bargain stocks to benefit their shareholders.
2- Share in spinoff stocks may slump when they begin trading. Many investors routinely dump stock they receive in a spinoff. They may only get a handful of shares — perhaps one for each 10 shares they own in the parent company. They may have little familiarity with the new company, and coverage by brokerage analysts and the press is often minimal at first. But after this initial slump, these spinoff stocks generally go on to outperform the market as a whole.
3- Spinoffs have more flexibility. Spinning off assets lets parent-company managers focus on the part of their business they want to retain. Usually they hold on to the part best suited to their talents.
4- Spinoffs often attract takeover bids from major competition.