Although Universal Pictures won't be delivering Guillermo del Toro's now cancelled At the Mountains of Madness, the studio will be bringing to the screen Mercy, based on the short story "Gramma." Inspired by H.P. Lovecraft, the short story was written by Stephen King for his 1985 short story anthology "Skeleton Crew." The Haunting in Connecticut's Peter Cornwell will direct with Matt Greenberg providing the screenplay.

Previously adapted for the small screen as an episode of "The New Twilight Zone" (written by Harlan Ellison), Mercy follows two young boys on a visit to the hospital where they learn that their dying grandmother is a witch and that her powers are fueled by a pact with the Ancient Ones.

Frances O'Connor is attached to star, though it is unclear exactly what role she will be playing.

Jason Blum, best known for the Paranormal Activity franchise, will produce alongside McG and Mary Viola.

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