Rock Creek Pharmaceuticals Inc. (fka RCPIQ)

[Drano]

Question about options: if STSI were to spin off a company to deal with, for instance, a royalty stream from e-cigarettes, what would happen to option holders? Would they have to exercise the options early (at a loss, probably) to get any benefit from that? Or would the options be re-priced somehow?

Please don't give me a bunch of arguments about how that scenario won't happen, it's just a "for instance." My question is, what happens to call holders if a company spins off some of their property (intellectual or otherwise) into another company?