First, there will be no second public company for LiveStock and no spinoff shares. Frankly, there is no point for even Bio to be public other than to dilute investors and get cash for operations.
Having said that, this is how a true public company spinoff would work (if not registering new shares). Ford Motor Company (F) decides to spinoff its electric division from the gas/diesel division. They decide to call it Ford Electric and it will be a new public company with the ticker FE. In order to be a true, real spinoff, all of the assets, liabilities, revenues, losses, everything for FE gets 100% divested from F and is 100% removed from the books of F. The market cap of F will go down accordingly. What happens next?
Let's say Ford Motor Company (F) determines Ford Electric (FE) is worth 25% of the total pie. F is trading at $100/share. F sets a date for the spinoff and announces the FE shares will convert an a 1 for 4 rate at a basis price of $100/share. If you owned 1,000 shares of F (worth $100,000) on the record date and hold through the spinoff, you will then own 750 shares of F, along with 250 shares of FE. Nothing is "free" because you lost 25% of your F stock. But it all evens out because when trading commences, F will likely (hopefully) stay around the same pps, but you now only own 750 shares (worth $75,000) of F instead of 1,000 shares of F. Your trading account will show a $25,000 loss on F, but for tax purposes, your price basis for your F stock will drop 25% so things even out for tax purposes. Next, you will have 250 shares of FE, and it should also trade at $100/share (worth $25,000), but it could go up or down based on what the market thinks of the spinoff. Same thing with F. The market could react favorably or not to F stock after the spinoff and losing 25% of the whole Ford Motor Company.
This situation in the real world is extremely more complicated and risky because the market will need to evaluate two companies and the price for both could go either way. For anyone to guarantee you that both will rocket up in value, that is just selling a pipe dream and anyone is free to buy that con, I guess. The bad actors on this board really did a number on folks with this spinoff share nonsense.