LONDON (Reuters) - Handmade Plc, which runs British movie company Handmade Films, plans to raise 17 million pounds ($28 million) to pay off debts and fund a new production unit that will make programing for children.

The company, which was set up by ex-Beatle George Harrison in the 1970s to finance Monty Python's 'Life of Brian', is planning to invest $5.6 million in a joint venture with National Geographic and up to $12 million in buying a U.S. animation firm.

In a move that contrasts with its anti-establishment roots, it has also bought the rights to books written by Sarah Ferguson, the Duchess of York, and plans a documentary series on women explorers, to be presented by Ferguson.

The fundraising will be via the placing of 68 million shares at 10 pence per share and convertible loan stock, the company said on Friday.

Separately, the company reported an EBITDA loss of 0.99 million pounds for 2008, compared to a loss of 2.95 million in 2007, on revenues of 4.85 million, up from 1.93 million.

"Despite the global crisis in the financing and economic market, the entertainment industry has demonstrated strong resilience," said Chairman Patrick Meehan.

Though fewer films were being made, Meehan said, there was increased interest from people wishing to invest in film productions as an alternative to the battered equity and property markets.

Shares in Handmade on London's junior AIM market have been suspended since June pending the announcement of the deal and fundraising. (Reporting by Rosalba O'Brien; Editing by Victoria Bryan)

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