Alto Neuroscience Inc. (NYSE: ANRO) announced it has entered into a securities purchase agreement for a private placement financing that will generate gross proceeds of approximately $120 million before deducting offering expenses.

Commodore Capital led the financing, with participation from new and existing institutional investors including Dellora Investments, Driehaus Capital Management, Perceptive Advisors, Spruce Street Capital, Venrock Healthcare Capital Partners, and Vestal Point Capital.

The company intends to use the proceeds to fund development of ALTO-207 through a planned Phase 3 clinical trial in treatment resistant depression. Alto expects to initiate a Phase 2b study of ALTO-207 in the first half of 2026 and a Phase 3 study in early 2027.

ALTO-207 is a fixed-dose combination of pramipexole and ondansetron. In a randomized, placebo-controlled Phase 2a clinical trial with 32 patients, ALTO-207 met primary and secondary endpoints, demonstrating greater improvements on MADRS compared to placebo.

In the private placement, Alto is selling 2.9 million shares of common stock at $20.00 per share and pre-funded warrants to purchase up to 3.1 million shares at $19.9999 per warrant. The pre-funded warrants have an exercise price of $0.0001 per share and will be immediately exercisable.

The financing is expected to close on March 17, 2026, subject to customary closing conditions. After accounting for the net proceeds, the company estimates its cash and cash equivalents would total approximately $275 million as of February 28, 2026.

Jefferies, BofA Securities, TD Cowen, Stifel, William Blair, and Baird acted as placement agents for the transaction.