Funding Announcement and Share Reaction

Mercer International Inc. (NASDAQ:MERC) saw its shares climb 45% in after‑hours trading on Wednesday after the Government of Canada announced a C$20 million financial support package for its Alberta subsidiary, Mercer Peace River Pulp Ltd. (MPR).

Funding Structure

The support, delivered through Prairies Economic Development Canada under the Regional Tariff Response Initiative, consists of a C$1 million non‑repayable contribution and a C$19 million repayable contribution. Repayment of the loan component is scheduled to begin in 2031.

Intended Use of Funds

The capital will be deployed to fund MPR’s transformation plan, which aims to improve mill productivity, modernise equipment, and prepare the facility for expanded bio‑energy production and carbon capture and storage (CCS). The plan builds on existing work, including a carbon‑dioxide capture demonstration unit already operating at the site.

Government and Executive Statements

The funding was announced by the Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for PrairiesCan, during a visit to the MPR mill in northern Alberta. Juan Carlos Bueno, President and Chief Executive Officer of Mercer International, said the investment is “an important step in the continued modernization of Mercer Peace River,” adding that it supports productivity, competitiveness and underscores the mill’s significance within northern Alberta’s forest‑products economy.

Mill Background

Mercer Peace River Pulp operates within northern Alberta’s integrated forest‑products sector, where fiber harvested from the region’s mixed boreal forests supplies both pulp and energy production. The mill has been in operation for more than 35 years, contributing to the local economy and the broader Canadian forestry industry.

Market Impact

The announcement triggered a sharp 45% rise in MERC’s after‑hours share price, reflecting investor optimism about the government‑backed capital infusion and the anticipated enhancements to the mill’s operational efficiency and future growth prospects.