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The Securities and Exchange Commission (“SEC”) has received information that several individuals and/or groups of persons have been offering or “pre-selling” securities to the public in the form of shares stock in hospitals currently under construction. To attract investors, these shares of stock allegedly grant the purchasers certain hospital benefits, such as, but not limited to waived or discounted O.R. fees; free or discounted private room, ward and I.C.U accomodations; discounts on use of I.C.U. equipment, medicines, medical supplies and other merchandise; and discounts on hospital services as well as Out-Patient and In-Patient case rates.The public is hereby informed that these shares of stock being offered are within the definition of “securities”under Section 3.1 of the Securities Regulation Code (SRC) and are required under Section 8 of the SRC to be registered with the SECunder asimplified format pursuant toSECMemorandum Circular No. 11 Series of 2017,before being offered or sold to the general public.Thus, a pending application for registration without approval of the Commission does not give Hospitals the imprimatur to issue such shares of stock. To date, only Diliman Doctors Hospital and St. Lukes Medical Center Global Cityhaveregistered their shares of stock with theCommission and are authorized to issuesuchshares to the public.Accordingly, thoseindividuals and/or groupof persons who engages in theoffering or “pre-selling”ofsecurities to the public without the necessary registrationstatement duly filed with and approved by the Commissionshall be held criminally liable under Sec. 73 of the Securities Regulation Code.In view thereof, thepublic is thus advised to exercise prudence in dealing with any individuals and/or groups of persons offeringfor sale shares of stock in hospitals and urges anyone who has knowledge or information about any transaction involving these securities to report such activity immediately to the Commission so that appropriate measures can be taken to protect their interest.For the guidance of the public