When filming on the movie almost completed, director Don Dohler sent what had been made up until that point to his investors (as a show of progress). The investors then requested that he re-shoot the entire movie on lower-quality film. When Dohler completed the film the second time, the investors took the master-print and disappeared. They (and the film) resurfaced years later, when they attempted to present the film with a different title (and poor-quality editing, as well as unnecessary padding). After that, the director begrudgingly released the film, and made no attempts to fix what the investors ruined. He said in an interview that he wasn't in the mood to, "...shoot the film a third time.".
Don Dohler quit directing after the nightmare experience he had with distributors for this film, and because he grew fed up with experiencing exasperation after exasperation associated with low-budget filmmaking. He then launched a film appreciation magazine called Movie Club, which he published until 1997. Two years later he decided to give filmmaking a try again and made The Alien Factor 2: The Alien Rampage, which was released in 2001.