In an amended registration statement filed Thursday with the U.S. Securities and Exchange Commission, Lindows--which will soonas a result of a legal settlement with Microsoft--said it expects shares to sell for $5 to $7 each.
The company originally set a range of $9 to $11 a share for 4.4 million shares, when itfour months ago, meaning that it could have raised up to $57.5 million. The target range was last week and cut again Thursday. The company could now see a payout as low as $22 million.
MP3.com founderlaunched Lindows three years ago to sell a version of the open-source Linux operating system with a look and feel similar to Microsoft's Windows.
Microsoft promptly sued the company, alleging that the name infringed on the software giant's Windows trademark. The ever-expanding dispute was finally settled last month, when Microsoft agreed to, and Robertson agreed to change the company's name to Linspire, a product name the company had already begun using in some overseas markets. The name change will become final by the Sept. 14 deadline set in the agreement.
While Lindows has generated significant publicity and legal attention, the company has a shakier record as a business. The initial registration statement charts a history of escalating losses and includes a statement from an independent auditor that "our historical losses and negative cash flows from operations raise substantial doubt about our ability to continue as a going concern."
Lindows has not yet set a date for the offering, which will have the company trading on the Nasdaq exchange under the symbol "LINE."