Now that it's officially announced via their Facebook I can break my silence. I located the following film materials and the director, and got Vinegar Syndrome on board for this upcoming release (no release date yet).
Originally Posted by Vinegar Syndrome
We've finalized our license arrangement on one of the weirdest and most memorable WTF vanity (?) project films ever produced, Mike Cartel's indescribably strange RUNAWAY NIGHTMARE!
I'm incredibly excited to co-present and co-release the official director's cut with Vinegar Syndrome through my soon-to-be-opened video store and distribution label Videonomicon. They'll be handling optical media, we're handling a limited VHS release.