Daily Price Movement / General Discussion, page-46057

According to the company:

Zip Co Limited (ASX: Z1P) (“Zip”) is pleased to announce the successful completion of its fully underwritten
A$148.7 million institutional placement, announced on Monday, 28 February 2022 (the “Placement”). Proceeds
raised under the Placement will help Zip strengthen its balance sheet and positions Zip for sustainable growth
by providing more capital runway to execute on the potential synergies from its proposed acquisition of Sezzle
Inc. (the “Proposed Transaction”), announced on Monday, 28 February 2022[1]

The footnote [1] says:

For more information about the Potential Transaction, refer to Zip’s ASX announcement and Investor Presentation released on 28
February 2022. Importantly, if the Proposed Transaction does not complete, Zip will use the proceeds from the Placement to improve its
balance sheet strength to support growth and for general working capital purposes.

So that's why.