April 13, 2005 10:45 AM, EDT

New Firm TelStar Logistics Corp. Begins Operations

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.S. BioTec Inc. said Wednesday that its new logistics subsidiary, TelStar Logistics Corp., began operations this week.

TelStar sent its first leased truck out with a payload on Tuesday and will send out four more on Thursday, the company said.

It said it has commitments from owner-operators to have 14 operational trucks on the road by April 28 and set a goal of having 40 owner-operator trucks running by the end of this year.

U.S. BioTec said TelStar has secured financing to fund the initial phase of operations, but did not give specific figures.

Jimmy Joyner, U.S. BioTec’s chief executive officer, said TelStar bought 14 refrigerated semi-trailers to be added to an existing fleet of four trucks.

TelStar also completed the acquisition of Scorpion Logistics, a refrigerated transport company, using a combination of stock and cash, allowing it to assume Scorpion’s operating registration, he said in a statement.

U.S. BioTec said it will use the same trucks that haul its raw materials and finished products to haul the agricultural products, ice cream, frozen foods and vegetable produce grown by its bio-chemical clients.