October 14, 2009 (FinancialWire) — Alliance Distributors Holding Inc. (OTC: ADTR), a distributor of interactive video games and gaming products, said it has purchased the video game assets of Boston-based Metaversal Studios, Inc.

The purchase price consists of an initial cash payment of $25,000, a $30,000 note by Alliance payable ratably over eighteen months and an earn-out approximating 20% of game profits for the period through September 30, 2010.

Alliance also loaned $30,000 to the seller and committed to establish a 5% of game profits bonus pool for Metaversal employees in the second year.

The purchased assets include Bad Apples and Alien Shore, two video games that Alliance said it expects to complete as downloadable games during the next four to eight months, as well as other video games in earlier stages of development.

Bad Apples is a casual game that will be released first as a download for the iPhone. Alien Shore is an episodic adventure game that Metaversal has been developing with the intention to distribute on the Microsoft Live Arcade platform.

Alliance estimates that Bad Apples and the first episode of Alien Shore will require around $250,000 to $300,000 in additional initial investment. Metaversal will also develop additional games through its seven person creative staff.

Prior to its acquisition by Alliance, Metaversal generated the majority of its revenue from the design of educational games and training material for various clients. It used funding from its consulting work to develop and release for no or minimal charge two games for the iPhone and many small games for the web browser. Metaversal built on this experience to develop the video games included in the purchase by Alliance. Metaversal has not to date sold video games to the public.

New York-based Alliance Distributors is a wholesale videogame distributor, specializing in gaming products and accessories for various manufacturers and 3rd party publishers.

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