Mercer International Soars 84% After Canadian Government Backs Alberta Pulp Mill

Mercer International Inc. shares surged 84.07% to $0.76 in after-hours trading Wednesday after the company announced Canadian government funding for its Alberta pulp mill.

Ottawa Supports Plant Modernization

Prairies Economic Development Canada committed C$20 million to Mercer's subsidiary, Mercer Peace River Pulp Ltd., for a regional tariff response initiative, the company said. The package includes a C$10 million non-repayable grant and a C$10 million repayable contribution, with repayment scheduled to begin in 2031.

Emergency Preparedness Minister and Minister responsible for Prairies Economic Development Canada, Eleanor Olszewski, announced the funding during a visit to MPR's northern Alberta facility, stating it would help the plant "modernize, compete, and protect" regional jobs.

The funding will support plant modernization and productivity improvements, and lay the groundwork for future bioenergy production and carbon capture and storage at the site, building on an existing carbon capture demonstration project.

CEO Juan Carlos Bueno said, "This investment is an important step in the ongoing modernization of Mercer Peace River."

The announcement came after Wednesday's market close, drawing investor attention. The after-hours rally followed a 3.17% decline during regular trading, which left the stock at $0.41.

Trading and Technical Indicators

Mercer International's market capitalization stands at approximately $27.45 million. The stock trades between a 52-week high of $3.38 and a 52-week low of $0.40.

MERC's relative strength index is 32.20.

Over the past 12 months, the global forest products company's shares have fallen 87.29%. Technical analysis indicates negative price trends across all time frames for MERC stock.