ZAMBOANGA CITY: The Securities and Exchange Commission (SEC) – Zamboanga Extension Office has warned the public against an “on-going solicitation of investment” by a corporation that is involved in health and hospital services.
Jesus Salvador Uro, SEC-Zamboanga director, issued the warning Monday after receiving an information that a group is offering or pre-selling securities to the public in the form of shares of stock in hospitals currently under construction.
To attract investors, the group’s representatives reportedly promise potential investors a number of hospital benefits, including a waived or discounted operating room fee, free or discounted private room and intensive care unit (ICU) accommodations, and other discounted privileges for laboratory and out-patient care services.
Uro said the solicitation of investment in exchange of a medical or health service and stocks without prior registration with SEC is a violation of the Securities Regulation Code (SRC).
He added that the shares of stock being offered are within the definition of “securities” under Section 3.1 of the SRC and are required under Section 8 of the SRC to be registered with the SEC before it can be offered or sold to the general public.
“The public is advised to exercise prudence in dealing with any individual or groups of persons offering for sale shares of stock in hospitals,” Uro said.
He urged those who have knowledge or information about any transaction that may have been done by the group to report immediately to the Commission so “appropriate measures can be taken.”