Film finance and production company Instinctive Film is moving into distribution via Interactor Media for release of films for theatrical and home entertainment audiences.

The company announced Tuesday that it had kicked off at the American Film Market, where it bought Holy Monster production “Broken Kingdom” with Rachel Leigh Cook, Daniel Gillies and Michael Bafaro’s thriller “Embedded.”

Instinctive principals Darryn Welch and Cole Payne will run day-to-day operations for the new venture and Jerome Wilhort will focus on acquisitions. The company said it will acquire scripted and documentary features for VOD and digital streaming, and will release select films theatrically.

Interactor Media will also use Instinctive’s funding platform for independent films, filminteractor.com, to support the marketing and distribution of its titles while allowing the filmmakers to play an active role in the marketing.

“We felt there was a void in the current distribution landscape that needed to be filled for small to mid-sized independent film fare that most distributors won’t invest in,” Welch noted. “With Interactor Media, we will look to acquire 25 to 40 films per year and will work side-by-side with independent filmmakers to help get their projects to audiences around the world using new media platforms and viral marketing strategies as part of a forward-thinking movement.”

Instinctive Film has produced “The Divide,” which premiered at the 2011 SXSW Film Festival and was acquired by Anchor Bay. It’s also in in post-production on the scientific thriller “Errors of the Human Body” and the adventurer documentary “Between Home.”